Shiba Inu Burn Rate Spikes 1,088% In One Day, But It’s Not All Good News
The Shiba Inu burn rate has seen a notable spike in the past 24 hours that suggests a turn in the tide when it comes to SHIB burning. However, despite this notable spike, it is not exactly the most encouraging of burns given the number of coins that has been burned. This report dives into the Shiba Inu burns in the last day, showing why even the large spike in the burn rate is not much to rejoice over.
Shiba Inu Burn Rate Jumps 1,088.66%
Data from the Shiba Inu burn tracking website Shibburn shows that the SHIB burn rate is back up again. This time around, there has been a significant 1,088% increase in the burn rate in the 24-hour period owing to a single transaction during this time.
In contrast to the positive increase in the burn rate, the meme coin is still seeing a lot of struggle when it comes to reducing the supply. The single transaction that caused the spike in the burn rate was carrying 98,136 SHIB, which is the only burn transaction recorded in one day. This means a total of 98,136 SHIB tokens were all that were burned in this one-day period.
To put this in perspective, at the current Shiba Inu price of $0.00001373, it means that only $1.34 worth of SHIB tokens were burned in the last day. Even worse is that the large spike caused by this single transaction is the fact that the burn rate has derailed drastically over the week.
For one, the last burn transaction before this transaction was three days ago. Even then, only three transactions were recorded for the whole day. On the broader scale, looking at the whole week, only 22 burn transactions were completed for Shiba Inu in the 7-day period.
Across these 22 burn transactions, the total SHIB burned came out to 8.54 million tokens. Using the current SHIB price, this comes out to les than $120 worth of tokens burned in seven days. It is also a 94.4% decline from the previous week’s numbers.
What’s Happening With The Burn?
The decline in the Shiba Inu burn rate has been alarming given how fast the burn rate was moving earlier in the year. Last week, Bitcoinist reported that the SHIB burn rate had dropped 100% in one day, meaning no burns were carried out.
In an effort to keep the burn rate going, the Shiba Inu team had announced earlier in August that automated SHIB burns were implemented on the Ethereum Layer 2 network, Shibarium. While this would naturally be good news, it has fallen flat, given the performance of the Shibarium network. It is currently the worst-performing Ethereum Layer 2 network, and with no fees generated, the automated burns have ground to a halt.
Amid this, the Shiba Inu community has taken another step in an effort to reduce the meme coin’s supply. A petition was started asking the Binance exchange to start burning SHIB tokens the same way it burns LUNC tokens. However, the petition has not gotten Binance’s attention as it only gained around 1,383 signatures at the time of this writing.
Featured image created with Dall.E, chart from Tradingview.com