• Shiba Inu (SHIB) has experienced an 800% increase in burn rate, resulting in the removal of almost two billion SHIB tokens from circulation.
• The increased burn rate could be due to community-led efforts to decrease the amount of SHIB in circulation and restore confidence in the token following the unsuccessful Shibarium launch.
• The whale activity on the SHIB network has decreased from 120 large transactions to 20, which may lead to a more decentralized distribution of SHIB tokens and minimize sell-off impacts.
Shiba Inu Burn Rate Up 800%: 1.8 Billion SHIB Tokens Burned
Rise in Burn Rate
The Shiba Inu (SHIB) token has been on a bear trend following the unsuccessful Shibarium launch. However, SHIB’s value has dropped by 22.3% over the last seven days almost erasing all the last month’s gains, but there is also an increased burn rate causing curiosity within the ecosystem. Recently, there have been a total of 1,840,593,165 $SHIB tokens burned and 255 transactions resulting in an 800% rise in burn rate which removes almost two billion SHIB tokens from circulation.
Possible Causes
The increased burn rate could be caused by a number of circumstances such as community-led efforts to decrease the amount of SHIB in circulation which would create scarcity and thus increase its value or it might be due to restoring confidence after Shibarium’s failed launch where 1,000 ETH became stranded in its ETH Bridge.
Decrease Whale Activity
Apart from this recent development with regards to SHIBS burning rate, another difficulty that Shiba Inu has faced is a decrease in whale activity on its network which is down from 120 large transactions to just 20 large transactions. This decrease can suggest significant holders lack confidence or might lead to more decentralization when it comes to distributing SHIBS tokens and minimizing sell-off impacts.
Overall Impact
At press time trading for around $0.000007976, Shiba Inu has recently endured quite some difficulties but has still showed tenacity on the market despite these obstacles it faces now with regards to burning rates and whale activities.