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The Shiba Inu (SHIB) burn rate has again tumbled with the number of tokens burned in the last 24 hours, painting a bearish picture for the meme coin. Shiba Inu’s burn rate has continually fluctuated since the start of the year, with a lack of a catalyst to sustain a significant amount of tokens burned daily.
Shiba Inu’s Burn Rate Declines By 100%
Data from the burn tracking website Shibburn shows that Shiba Inu’s burn rate has declined by over 100%, with zero tokens burned in the last 24 hours. Interestingly, no SHIB token has been burnt in the past three days, with the last token burn coming on August 13, when 802,246 Shiba Inu tokens were burnt.
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Further data shows that Shiba Inu’s weekly burn rate is down by over 62%, with about 42.9 million SHIB burnt in the last seven days. This decline in Shiba Inu’s burn rate comes amid Shibarium’s recent transition to an automated burn mechanism. 70% of base transaction fees earned on the layer-2 network are automatically converted to SHIB and burnt.
This transition to an automated burn mechanism was expected to positively impact Shiba Inu’s burn rate and possibly increase the number of tokens burned daily, but that hasn’t been the case so far. A plausible explanation is that the transaction fees earned on the Shibarium network haven’t been sufficient to implement automated daily token burns.
Shibarium’s network activity has declined for the past few months. Data from the Shibariumscan shows that daily transactions on the layer-2 network have stagnated and ranged between 3,000 and 8,000 in the last month. The highest daily transaction recorded during this period came on August 1, with 8,630 transactions processed that day.
As a result, transaction fees on the network are way below what the layer-2 network used to record, especially when it averaged about 5 million daily transactions in December 2023. For instance, Shibarium earned 6.8 BONE ($2) in transaction fees on August 15. Therefore, it is understandable that the team will be hesitant about implementing automated daily burns.
On-Chain Metrics Also Paint A Bearish Picture
Shiba Inu’s on-chain metrics also paint a bearish picture for the meme coin, with a decline across the board. Data from the market intelligence platform IntoTheBlock shows that the meme coin’s large transactions are down by over 14%, indicating a lack of interest among SHIB whales.
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The percentage of Shiba Inu holders currently in the money has also dropped to 45%, with most holders currently holding at a loss. Meanwhile, the net network growth is still declining, as there is a lack of new investors in the Shiba Inu ecosystem.
At the time of writing, Shiba Inu is trading at around $0.00001338, down almost 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
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