Burn Rate Plummets
Shiba Inu’s burn rate has crashed by 97% to start the week, with only two transactions burning a measly 128,791 SHIB tokens. This is a far cry from the 4.5 million SHIB burned the day before.
Declining Trend
The burn rate has been steadily dropping over the past week, with a 40% decrease in the last seven days and a 78% plunge in May.
Shibarium’s Role
Shibarium, the layer-2 network, used to contribute heavily to SHIB burns. However, its daily transactions have dwindled, leading to fewer token burns.
Impact on Price
Token burns can significantly impact SHIB’s price, especially when combined with increased demand. However, with a circulating supply of over 589 trillion SHIB, significant burns are crucial for the coin to reach higher values.
Target Supply
To reach $0.01, Shiba Inu’s maximum circulating supply needs to be reduced to 134 trillion. The current burn rate is far from sufficient to achieve this goal.
Current Market Situation
At the time of writing, SHIB is trading at around $0.00002472, down over 1% in the last 24 hours.
