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Shiba Inu has seen its burn rate basically flatlined in the last after recording one of its highest jumps in history. The 99% decline in the SHIB burn rate raises concerns over the involvement of the community and whether burning SHIB tokens has lost its appeal.
Shibburn data on Wednesday, November 8, shows a 99.35% decline in the Shiba Inu burn rate in the last 24 hours. The burning of Shiba Inu tokens is an effort to drastically reduce the supply but interest seems to be waning, especially since the burn seems to have no effect on the price.
Only 1.12 million tokens were burned in the 24-hour period, a very low number for a full day. However, the previous day’s activities also contributed to making this burn figure look incredibly small. On Tuesday, November 7, Shiba Inu marketing lead, Lucie, revealed the Shib Dream team had burned 550 million SHIB, leading to an over 14,000% surge in the burn rate.
— | ✨Shib.io✨ (@LucieSHIB) November 7, 2023
Given this incredibly high burn figure spiking the burn rate, the numbers for Wednesday pale in comparison. In total, there were 10 Shiba Inu burn transactions recorded on the blockchain, with the largest transaction carrying only 553,521 tokens.
The daily burn rate is not the only one that has taken a hit though as the weekly timeframe has not fared well. With the burn figure sitting at 308.74 million in the last 7 days, the SHIB burn rate is down 35.44% on the weekly timeframe.
SHIB price rests at $0.0000082 | Source: SHIBUSD on Tradingview.com
As the Shiba Inu burn rate falls, its Layer 2 Shibarium network has seen a decline in its operations as well. ShibariumScan data shows that the daily transactions for the last 24 hours are 9,930 transactions, making it the first time that the transaction count has fallen below 10,000 since the network was launched
This decline in the number of daily transactions could suggest that investor participation is declining on the network. And a drop in transaction count could have a ripple effect across the entire network. It could also contribute to a decreased burn rate.
As for the SHIB price, it continues to demonstrate strength in the market after recovering above $0.000008 once more. Its gains for the last day come out to 1% but is seeing much higher gains of 7.63% on the weekly chart.