As the bearish pressures of the crypto market catches up to Shiba Inu, it has begun to manifest in other metrics of the meme coin. The most prominent in recent times is the SHIB burn rate, which has taken a significant nosedive during this time.
Shiba Inu Burn Rate Crashes 91.94%
In a surprising turn of events, the Shiba Inu burn rate has seen a significant decline of 91.94%. This drop comes in the last 24 hours, underscoring the lack of attention to this metric, as well as the conservative stance that investors have taken during this time.
According to the Shiba Inu burn tracking website, Shibburn, there were only 2.367 million SHIB tokens burned in the last day. This is in stark contrast to the 29.5 million that were burned the prior day. Also, looking at the burn rates from this week, it shows that this lack of interest is very recent and may have to do with the Bitcoin price crashing below $62,000.
For example, on May 13, Shibburn reported that over 20.2 million tokens were burned, which was a 94.7% increase at the time. What followed this was the 29.5 million that was recorded on May 14, and at the time, it was an over 110% increase in the burn rate.
The lack of interest is also reflected in the number of burn transactions recorded in the 24-hour period. So far, only four burn transactions have been recorded in the last day, with the largest transaction carrying around 1.5 million SHIB. Furthermore, the last burn transaction was recorded 16 hours ago, as at the time of writing.
This decline in the daily burn rate has also impacted the weekly burn rate. Shibburn’s report show a 143.35 million token burn rate in the last week, which is only a meager 3.59% increase from the figures recorded in the prior week.
HOURLY SHIB UPDATE$SHIB Price: $0.00002394 (1hr -0.19% ▼ | 24hr 0.52% ▲ )Market Cap: $14,085,134,825 (0.70% ▲)Total Supply: 589,273,603,589,470
TOKENS BURNTPast 24Hrs: 2,373,041 (-91.92% ▼)Past 7 Days: 143,350,536 (3.59% ▲)
— Shibburn (@shibburn) May 15, 2024
SHIB Investors Are Still Holding
Usually, when Shiba Inu burn rate declines, it often points to investors choosing to hold on to their tokens, and this is often reflected in their selling rate. According to data from Santiment, this trend has held as SHIB investors have refrained from sending their tokens to exchanges, leading to a significant drop in active SHIB deposits.
This is bullish for the meme coin because when investors choose to send their tokens to exchanges, it means that they are looking to sell. In the present case of Shiba Inu, investors are choosing to hold on to their tokens rather than send them to exchanges, which means that they are not willing to sell.
An unwillingness to sell will crash the selling pressure and once demand surpasses the supply, then prices will have to recover. If Shiba Inu investors continue this trend, and the crypto market recovers once more, then the meme coin may be poised to rally from here.
Featured image from CoinCodex, chart from Tradingview.com
