The Shiba Inu burn rate has flatlined over the last 24 hours as the burned tokens, as well as the number of burn transactions carried out during this time, dropped dramatically. This drop in the burn rate could be indicative of SHIB users not being as involved in reducing the meme coin’s supply as they used to.
Shiba Inu Burn Rate Fails To Move
At the beginning of the year, interest in burning Shiba Inu tokens in a bid to reduce its supply was very high, and this saw a large number of tokens being burned. The Shiba Inu team also joined in on the effort, using fees generated from the Ethereum Layer 2 network Shibarium to also carry out burns.
However, as the market recovered, the interest in burning SHIB tokens waned. This is evident in the number of burn transactions recorded over the last few weeks, which is much lower compared to late last year and early this year. For example, in the last 24 hours, there have been only two burn transactions recorded by the burn tracking website Shibburn.
In total, only 2 million SHIB coins were burned in the last day and going by the current value of the token, approximately $19 worth of tokens have been burned. This burn figure also coincides with the number of SHIB tokens that were burned on the previous day, leading to only a 1.93% difference in the last two days.
The meme coin is not faring any better on the weekly chart, as outlined by the burn tracker. Shibburn’s update on its official X (formerly Twitter) account shows that there has been a 38% decline in the burn rate in the last seven days, with only 64.85 million tokens worth around $611, burned.
Why Are SHIB Holders Not Burning SHIB?
The reluctance of Shiba Inu holders to burn tokens could be linked to the price recovery that has been recorded in the crypto market. As the market heads into what is expected to be an explosive bull market, prices are expected to rise rapidly, and SHIB is not left out. As a result, holders could be holding on to their coins as they expect the coins to appreciate in value during this time.
In the midst of this, the Shiba Inu team has been making efforts to burn more SHIB. As Bitcoinist reported, the team’s marketing lead, Lucie, revealed that a portion of the proceeds of its new NFT project, known as Sheboshi, will be used to carry out burns for SHIB, among others.
The team is also working on automating SHIB burns on the Shibarium network using the fees generated. Once implemented, this burn mechanism is expected to remove billions of tokens each month, drastically reducing the supply over time.