Shiba Inu saw a lull in its burn rate last week, which coincided with the decline in the price of the meme coin. During this time, the number of tokens being burned on a daily basis dropped tremendously, causing the burn rate to suffer. However, as this week draws to a close, there has been a turn in the tide, with the Shiba Inu burn rate seeing a massive uptick in its burn rate, spurred on by the lead developer of the project.
According to data from the Shiba Inu burn tracking website, Shibburn, there has been a notable increase in the number of SHIB tokens being sent to the burn address. In the 24-hour period, a total of 87.76 million tokens have been incinerated, leading to a 48,554.74% spike in the burn rate.
Interestingly, the total number of tokens burned only came from two wallets. The first transaction was from the “0xb8001c3” wallet which sent a total of 61.9 million tokens to the burn on Wednesday. The next transaction would come only two hours later from the “0xa9d1e0” wallet, which carried 25.85 million SHIB tokens.
This was a huge difference compared to the prior day which had seen only 180,375 tokens burned in one transaction in a 24-hour period. This abysmal number saw the Shiba Inu burn rate fall drastically, leading to a 99.59% decrease in burn rate.
On the weekly timeframe, the burn rate is still performing poorly compared to the prior week, despite the surge in the last day. Shibburn’s data shows 275.57 million tokens burned in the last seven days, which constitutes a 4.63% decline.
What Triggered The Surge In The SHIB Burn Rate? There are often various triggers for a surge in burn rates, ranging from improved community sentiment to the Shiba Inu team itself burning tokens. However, this time around, it was neither of those things as the current burn trend looks to be rather organic.
This could suggest a return in positive sentiment for Shiba Inu investors, especially when it comes to trying to reduce the number of SHIB tokens in circulation. By reducing supply, it enables demand to rise above supply, thereby increasing the meme coin’s price in the process.
SHIB’s price is currently seeing small gains of 0.32% after the burn transactions were carried out. However, with the Bitcoin price fluctuating and favoring a downtrend, the start to the recovery may only be short-lived.
SHIB price at $0.000027 | Source: SHIBUSDT on Tradingview.com Featured image from Coinmarketcap, chart from Tradingview.com
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Scott Matherson Scott Matherson is a leading crypto writer at Bitcoinist, who possesses a sharp analytical mind and a deep understanding of the digital currency landscape. Scott has earned a reputation for delivering thought-provoking and well-researched articles that resonate with both newcomers and seasoned crypto enthusiasts. Outside of his writing, Scott is passionate about promoting crypto literacy and often works to educate the public on the potential of blockchain.