Shiba Inu’s Burn Rate Plummets 60% in July Amid Market Downturn

by

As a seasoned researcher with a decade of experience in the cryptocurrency market, I find myself both intrigued and perplexed by the latest developments surrounding Shiba Inu ($SHIB). On one hand, the community’s initiative to burn tokens is commendable, as it could potentially reduce the supply and theoretically increase the value of each remaining token. However, the 60% plunge in the burn rate over the past month is concerning, especially when coupled with a 6.8% drop in SHIB’s price over the last 30 days.

Over the past month, the rate at which Shiba Inu‘s meme-based cryptocurrency ($SHIB) is being destroyed has dropped by approximately 60%. This decrease occurred due to members of its community sending about 380 million tokens, equivalent to more than $6,000 in value, to burn addresses during July.

As a researcher, I’ve been monitoring the Shiba Inu burn rate, and according to data from Shibburn, there’s been a significant decrease. Specifically, the monthly burn rate has dropped by approximately 58.57%. Interestingly, the daily burn rate peaked at an astounding 70 million tokens on July 11th.

🔥🔥🔥 379,473,801 $SHIB tokens have been burned in the month of July with 178 transactions. #SHIB — Shibburn (@shibburn) August 1, 2024

The Shiba Inu coin has three uncontrollable addresses within the Ethereum system, similar to how other tokens operate. These ‘burn’ addresses work such that when coins are transferred there, they essentially disappear from the circulating supply because no one can access or recover them.

The speed at which the meme-related crypto, SHIB, is being destroyed (or burned) increased as its price fell approximately 6.8% over the past month and an additional 5% within just the last week. This downward trend coincides with a broader cryptocurrency market slump, during which Bitcoin decreased by about 1.4% in a week to reach $64,500.

Over the recent period, I’ve noticed an intriguing trend in the Shiba Inu (SHIB) market. According to CryptoGlobe’s report and data from Santiment, large SHIB holders outside exchange wallets have been steadily accumulating the cryptocurrency. Interestingly, the top 150 exchange wallets have witnessed a significant decrease in their SHIB holdings, amounting to a staggering 5.53 trillion tokens.

As a researcher focusing on cryptocurrency markets, I’ve noticed a common practice among investors: they typically keep their digital assets, such as SHIB, on exchanges for easy access when they wish to sell. Consequently, a reduction in the amount held on these exchanges might indicate a decrease in the readily available supply of SHIB that can be quickly liquidated.

Read More

2024-08-02 01:09