Shiba Inu Burn Rate (SHIB) has decreased significantly to start the new week. The decline in the number of Burned Shiba Inu tokens continues to be a problem for the local ecosystem, and certain factors are contributing to this decline.
SHIB burn rate decreases by 97%
Data from the burn tracking website, Shibburn shows that Shiba Inu Burn Rate has declined by over 97% in the last 24 hours, with only 128,791 SHIB tokens burned during this period. These burns occurred in just two transactions, with 100,000 Shiba Inu tokens burned. a transaction and 28,791 burned in the second transaction.
This contrasts sharply with the day before, where more than 4.5 million SHIB tokens were burned. However, the bigger picture shows that the Shiba Inu burn rate has been declining for some time now. Further data from Shibburn shows that there has been a nearly 40% drop in the meme coin’s burn rate over the past seven days.
Meanwhile, SHIB also saw a 78.23% drop in monthly burn rate in May. Over 369 million tokens were burned in May, which is still relatively low compared to the number burned in April.
This decline is partly due to Shibarium layer 2 network, which saw a significant drop in its daily transactions. The network is known to have contributed significantly to SHIB burns carried out in the past, with over 33.8 billion Shiba Inu tokens burned in December last year, thanks to Shibarium.
However, lately Shibarium has failed to execute SHIB token burns, probably because the transaction fees the gains generated by these daily transactions are not enough to consider delegating part of them to token burns.
Importance of Shiba Inu Token Burns
These Shiba Inu token burns have a significant impact on the price of the meme coin, especially when complemented by growing demand for SHIB. Additionally, token burns are critical at a time like this, where the bull run is about to get off to a strong start.
Shiba Inu is expected to see impressive demand, given that coins are one of the main stories of this cycle. Therefore, burning these SHIB tokens on a large scale could help the price of the meme coin skyrocket to new highs.
Meanwhile, since SHIB still has a circulating supply of over 589 trillion, these symbolic burnings are deemed necessary if the meme coin is ever to reach certain heights. The Shiba Inu burn tracker has note that the maximum circulating supply of Shiba Inu must be set at only 134 trillion if the coin is to become even reach $0.01.
At the time of writing, the Shiba Inu is trading at around $0.00002472, down more than 1% in the last 24 hours, according to data from CoinMarketCap.
