The Shiba Inu burn rate has turned negative after a rather good week of momentum. This downturn in the burn rate is a deviation from the established trend this week and could have something to do with the decline in the SHIB price during this time.
Shiba Inu Burn Rate Drops 28%
The burn rate saw a significant decline between Thursday and Friday after the number of burn transactions fell. Over the 24-hour period, there was a total of 14.37 SHIB burned, which translates to a 28.05% decline from the prior day’s figures, according to data from the Shiba Inu burn tracking website, Shibburn.
These burns only happened across a total of five transactions for the whole day, with a single wallet carrying out the majority of the burns across two transactions. The “0xa9d1e” wallet first burned a little over 7.83 million SHIB tokens. And then, in the next transaction, the same wallet burned another 5.244 million SHIB tokens.
Three other burn transactions were also recorded during this time period but their figures were much lower, all coming in below a million. The highest of the trio sent around 922,679 tokens to the burn address, another sent 192,110 tokens to the burn address, and the lowest was a transaction carrying 185,839 tokens.
SHIB’s burn rate decline is in stark contrast to the trends that were recorded earlier in the week, with burn rate surging over 100% on a daily basis. However, there is still an upside on the weekly chart as the burn tracker shows 240.688 million tokens have been burned in the last week, a 9.66% increase from the previous week.
HOURLY SHIB UPDATE$SHIB Price: $0.00002691 (1hr 0.06% ▲ | 24hr 2.06% ▲ ) Market Cap: $15,819,987,740 (2.16% ▲) Total Supply: 589,275,378,490,478
TOKENS BURNT Past 24Hrs: 14,376,584 (-28.04% ▼) Past 7 Days: 240,688,217 (9.66% ▲)
— Shibburn (@shibburn) April 5, 2024
SHIB Downtrend Could Be The Reason For The Decline
One factor that could be driving the decline in the Shiba Inu burn rate could be the drop in price. Usually, when prices of a crypto asset are down, it often leads to decreased participation for investors as they wait out the bear trend. Given that the SHIB price has dropped around 12% in the last week, it is no surprise that SHIB investors are choosing to sit on their hands.
The Shiba Inu price is now sitting below $0.000027, which was an important support level for the coin. However, bears have been able to turn this price point into resistance, which makes it the level to beat for the meme coin going forward.
Nevertheless, bullish sentiment continues to prevail as crypto analyst Altcoin Sherpa sees a future where the SHIB price grows enough that its market cap eventually flips that of its biggest rival, Dogecoin. The crypto analyst predicts that SHIB could rise more than 2,000% from its current price level, which could put it as high as $0.0004.