The Shiba Inu burn tracking website Shibburn recently revealed how many SHIB tokens were burned in September. The burn rate witnessed an impressive surge compared to the number of tokens burned the previous month.
Shiba Inu Burn Rate Spikes In September
Shibburn revealed in an X post that almost 2.4 billion Shiba Inu tokens ($42,069) were burned in September with 131 transactions. This represents a 249% spike in the monthly burn rate, as 680 million SHIB tokens were burned in August. This is a positive development for the Shiba Inu ecosystem, considering the impact that the token burns could have on SHIB’s price in the long term.
The spike in Shiba Inu’s monthly burn rate in September is believed to be thanks to the impressive run that the meme coin had last month. This boosted investors’ confidence in accumulating the meme coin throughout September.
The accumulation trend by Shiba Inu whales ultimately led to more SHIB tokens being burned since some transaction fees are reserved for buybacks and burns. Interestingly, the SHIB ecosystem was able to manage this burn rate milestone despite Shibarium’s daily transactions remaining flat all through September.
Meanwhile, it remains to be seen if the Shiba Inu burn rate in October could surpass the September feat. The burn rate this month hasn’t gotten off to a great start. Shibburn data shows that the burn rate has dropped by over 93% in the last seven days. The Shiba Inu burn rate has also stalled in the last 24 hours, with 572,837 SHIB tokens burned during this period, representing a 78% decline.
The drop in SHIB’s burn rate is likely due to the current bearish sentiment in the broader crypto market. The ‘Uptober’ rally hasn’t gone as planned so far, so investors are wary about accumulating more tokens, including SHIB. However, a price recovery across the board could ultimately lead to a spike in Shiba Inu’s transactions and the burn rate.
On-chain Metrics Also Paint A Bearish Picture
Shiba Inu’s on-chain metrics also paint a bearish outlook for the meme coin. Data from the market intelligence platform IntoTheBlock shows that there has been a decline in the number of Shiba Inu holders in the money. This is significant as a significant price drop for the meme coin could spark a wave of sell-offs, leading to more downward pressure.
The concentration metric is also bearish, indicating that Shiba Inu whales are currently offloading their holdings rather than accumulating more tokens. SHIB’s net network growth has also remained stagnant, with the number of new daily addresses still within the same range.
Amid these bearish on-chain metrics, it is worth mentioning that Shibarium recently achieved a notable feat: the network’s total value locked (TVL) surged past $7 million.
At the time of writing, Shiba Inu is trading at around $0.000016, up over 1% in the last 24 hours, according to data from CoinMarketCap.