The Shibburn platform has reported a notable decrease in the burn rate of SHIB tokens, contrasting with the cryptocurrency‘s price increase. The crypto community is now speculating on the potential inverse relationship between SHIB’s burn rate and its market price.
Analysis of SHIB Burn Rate Dynamics
A recent update highlighted a 56.43% reduction in SHIB’s burn rate, with only 1,255,916 SHIB tokens being burned. This decline is surprising, especially since 2.8 million Shiba Inu meme coins were moved to non-spendable wallets just the day before.
The majority of the tokens burned were through two significant transactions, sending the SHIB to wallets where they cannot be spent. This reduction is stark compared to the 4,240% burn rate spike on January 25, which saw over 15 million SHIB tokens burned.
Despite the recent slowdown in burning, the Shiba Inu team is transitioning from a manual to an automatic burn mechanism with the Puppynet test network, aiming to extend this to the main network. This move is expected to enhance the efficiency and scalability of the burn process.
In the past, the SHIB team has orchestrated the burning of over 40 billion SHIB tokens to decrease the circulating supply. These events were funded by BONE transaction fees on Shibarium. While some fees support Shibarium’s operations, others are used to convert BONE into SHIB for burning, although only SHIB tokens are eligible for burning as per the developers’ clarification.
The recent dip in SHIB’s burn rate, alongside the ongoing developments, adds a layer of complexity to the Shiba Inu token’s market behavior and future prospects.