The Shiba Inu burn rate is facing new challenges amidst a corresponding lull in the Shiba Inu price. According to data from Shiba Inu burn tracker Shibburn.com, the number of SHIB tokens burned in the past 24 hours has declined noticeably, which gives rise to a concern about the activity surrounding Shiba Inu and whether the already declining Shiba Inu price action could be negatively affected.
Shiba Inu Burn Suffers 30% Crash
Shiba Inu’s burn rate is a main principle of the SHIB tokenomics strategy, as it is aimed at reducing supply and increasing scarcity over time. However, recent data from Shibburn.com indicates a concerning drop in burn activity. Over the past 24 hours, only 3.378 million SHIB tokens were removed from circulation through burning. While this figure may initially appear plenty, it actually represents a sharp 30.36% decline compared to the previous 24-hour period.
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This decline in the total number of tokens burned shows a slowdown in burn activity, which is particularly noticeable when compared to the heightened burn levels recorded just two days ago. A detailed look into data from Shibburn.com shows that this decline is evident not only in the reduced total number of burn transactions but also in the markedly smaller amounts of SHIB tokens being sent for burning in each transaction.
Furthermore, the low burn activity is further visible when compared to the SHIB burns two days ago. For instance, the highest number of SHIB tokens burned in one transaction in the past 24 hours comes out at 1.99 million SHIB tokens. This pales in comparison to the 169 million burned in one single transaction just two days ago.
What Does This Mean For SHIB Price? Bearish Trend Ahead?
The critical question remains whether the decline in burn rate will translate into a corresponding drop in SHIB’s price. Interestingly, the SHIB price movements seem to be reflecting the decline in the low activity. At the time of writing, SHIB is trading within a narrow range between $0.00002756 and $0.00002330 in the past seven days.
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The SHIB price movement started the week on a bearish note and is down by about 1.3% in the past 24 hours. Particularly, the SHIB price is trading at $0.0000253, although reaching a low of $0.00002436 in the past 24 hours. Furthermore, the SHIB trading volume has declined by 19.27% in the past 24 hours, further relaying the low activity trend.
However, the Shiba Inu burn crash doesn’t necessarily spell gloom for the SHIB price. A resurgence in broader crypto activity could cause the return of bullish activity into the meme coin, especially if the Bitcoin price eventually breaks above $100,000.
Featured image created with Dall.E, chart from Tradingview.com