The Shiba Inu (SHIB) burn rate has been on a wild ride lately, and it’s not looking good for the meme coin. The number of tokens burned in the past 24 hours has plummeted, and things haven’t been much better for the past few days.
No More Burning?
The burn rate has been all over the place since the beginning of the year, but things have gotten even worse recently. In fact, zero SHIB tokens have been burned in the last three days! The last time we saw any burning action was on August 13th, when a measly 802,246 tokens went up in smoke.
The weekly burn rate is also down by over 62%, with only about 42.9 million SHIB burned in the last seven days. This is a far cry from the days when the burn rate was consistently higher.
Shibarium’s Automated Burn Mechanism: A Dud?
Shibarium, the layer-2 network for Shiba Inu, was supposed to be a game-changer for the burn rate. They introduced an automated burn mechanism, where 70% of transaction fees are automatically converted to SHIB and burned. But it seems like this new system isn’t quite living up to the hype.
The problem? Transaction fees on Shibarium have been pretty low lately. The network’s daily transaction volume has been stuck between 3,000 and 8,000 for the past month. That’s a far cry from the 5 million daily transactions they were seeing back in December 2023.
With such low transaction fees, it’s understandable why the team is hesitant to implement automated daily burns. It’s simply not worth it right now.
On-Chain Data: Not Looking Good
The on-chain data for Shiba Inu is also painting a bleak picture. The number of large transactions, which are usually made by whales, has dropped by over 14%. This suggests that big investors are losing interest in SHIB.
Only 45% of Shiba Inu holders are currently in the money, meaning most people are holding at a loss. And the net network growth is still declining, indicating that new investors aren’t jumping on board.
With all of these factors pointing downwards, it’s no surprise that Shiba Inu’s price has taken a hit. At the time of writing, SHIB is trading at around $0.00001338, down almost 2% in the last 24 hours. It looks like the meme coin has a long way to go before it can regain its former glory.
