The Shiba Inu Burn Rate Fails to Move
Over the past 24 hours, the burn rate of Shiba Inu (SHIB) has remained stagnant as the number of burned tokens and burn transactions has significantly decreased. This lack of activity suggests that SHIB users are not as actively involved in reducing the supply of the meme coin as they previously were.
Decline in Burning SHIB Tokens
Earlier this year, there was a high level of interest in burning SHIB tokens to decrease its supply. The Shiba Inu team also participated in this effort by using fees from the Shibarium Ethereum Layer 2 network to conduct burns.
However, as the market recovered, interest in burning SHIB tokens diminished. This decline is evident in the reduced number of burn transactions compared to late last year and early this year. For instance, only two burn transactions were recorded in the past 24 hours according to Shibburn, a burn tracking website.
In total, only 2 million SHIB coins were burned in the last day, equivalent to approximately $19 worth of tokens. This figure is consistent with the number of SHIB tokens burned on the previous day, resulting in a mere 1.93% difference over the past two days.
Decrease in Burn Rate on Weekly Chart
The burn tracker reveals that the meme coin’s burn rate has also declined on the weekly chart. In the last seven days, there has been a 38% decrease in burn rate, with only 64.85 million tokens worth around $611 being burned.
Possible Reasons for Holding onto SHIB Tokens
The reluctance of Shiba Inu holders to burn their tokens may be attributed to the price recovery observed in the cryptocurrency market. As the market enters an anticipated bull run, prices are expected to rise rapidly, including SHIB. Therefore, holders may be holding onto their coins in anticipation of their value appreciation during this period.
To encourage more burning of SHIB tokens, the Shiba Inu team has been taking steps. For example, a portion of the proceeds from their new NFT project called Sheboshi will be used for burns. Additionally, they are working on automating SHIB burns on the Shibarium network using generated fees. This automated burn mechanism is projected to remove billions of tokens each month and significantly reduce the supply over time.
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