Shiba Inu Burn Rate Suffers 99% Crash, What’s Behind It?
The Shiba Inu burn rate has witnessed a significant decline over the last day as the amount of tokens sent to the burn wallet dropped drastically. This development is alarming given the that there had been a marked increase in the number of burned tokens over the last week, raising questions about the reason behind the decline.
According to data from Shiba Inu burn tracking website Shibburn, there has been a 99.25% decline in the burn rate over the last day. The data shows that there have been only 2.89 million tokens burned in the 24-hour period. This is in stark contrast to the prior day which saw more than 380 million tokens incinerated.
There have only been five burn transactions recorded at this time, with the largest single burn being a wallet sending 2,055,498 SHIB tokens to the burn address. This made up around 70% of the total burned tokens for the time period.
This decrease in the burn rate suggests a slowdown in community interest, especially as the SHIB price begins to recede after a massive rally. It suggests an unwillingness to part with coins as investors continue to expect high prices for the meme coin.
On the weekly timeframe, the Shiba Inu burn is doing quite well. Shibburn’s update shows a 2,998% increase in seven days, with more than 14.5 million SHIB tokens burned. This suggests that investors are more willing to burn coins when the market is more bullish.
Shiba Inu Sees Adoption In Other Areas
Although there has been a slowdown in the number of SHIB tokens burned on a daily basis, Shibarium, an Ethereum Layer 2 network developed by the Shiba Inu team, has continued to see adoption. The network continues to maintain an average of 1 million transactions per day, reflecting the sustained interest from investors.
Since its launch in 2023, the network has processed 408 million transactions and counting, with more than 3.65 million blocks created so far. However, the network seems to have a problem when it comes to retaining builders, as the number of verified contracts sits low.
Data from Shibariumscan shows that in the month of March, there has been an average of three verified contracts each day. In total, there have been 15,646 contracts created, while only 1,636 contracts have been verified. This means that around 11% of the total contracts created on the network are verified.
As for the SHIB price, it has fallen 8.47% over the last week to take at $0.00003297 at the time of this writing. This poor performance has seen its market cap drop to $19.19 billion, losing the 10 spot in the top cryptocurrencies by market cap to Avalanche (AVAX) with a market cap of approximately $20.3 billion.
SHIB recovers after dip | Source: SHIBUSDT on Tradingview.com
Featured image from CoinTurk News, chart from Tradingview.com
