SHIB Token Burn Rate Plunges by 83%: What’s Behind the Fall?

Amidst SHIB’s plummeting burn rates, understanding the implications and shifts in Shiba Inu’s tokenomics strategy becomes crucial.

Shiba inu firebreathing on SHIB coins, man is worried.
Created by Kornelija Poderskytė from DailyCoin
  • The weekly burn rate of Shiba Inu has hit its lowest point in months.
  • The specific cause for this plunge has remained unknown.
  • The SHIB community seems to have been focusing on expanding use cases for the token.

Shiba Inu’s (SHIB) weekly burn rate has dramatically declined, reaching its lowest level in recent months. This significant drop in burning activity raises questions about the future of SHIB’s tokenomics strategy and its potential impact on the token’s price.

SHIB Tokens Witness 83% Drop in Burn Rate

According to data from Shibburn, only 49,691,122 SHIB tokens were burned in 26 transactions over the past seven days, amounting to a mere $417.41. This represents an 83% drop in the weekly burn rate.

In the last 24 hours, the burn rate has taken an even steeper plunge, with just 52,892 SHIB tokens burned in four transactions, equating to a negligible $0.44. This marks a 99.21% decrease in the daily burn rate.

The reasons behind this drastic decline remain unclear, and it may not necessarily indicate a waning interest in SHIB burning. However, recent developments suggest that there could be underlying factors at play.

Internal Tension?

Reports indicate a strained relationship between Shibburn, the platform that tracks SHIB burns, and the Shiba Inu team. While the extent of this discord and its impact on burn rates remain unknown, it is a factor worth considering.

Amidst these developments, discussions surrounding token burns within the Shiba Inu community appear to be losing steam. The focus seems to be shifting towards expanding the use cases for Shiba Inu and the Shibarium Layer 2, with the hope that increased utility will drive the SHIB token price.

Given the massive circulating supply of SHIB (589.35 trillion SHIB), even substantial burn numbers may have a limited impact on the price. Therefore, the community seems to prioritize demand-driven price appreciation over solely relying on token burning.

On the Flipside

  • Since the community seems to be prioritizing demand-driven price appreciation. The decline in SHIB’s burn rate might be a strategic shift rather than a cause for concern.
  • While tensions between Shibburn and the Shiba Inu team are reported, the exact nature and extent of their disagreement and how it directly affects burn rates remain ambiguous and unconfirmed.

Why This Matters

The significant decline in Shiba Inu’s burn rate highlights potential shifts in tokenomics strategy and community focus. This move away from burning discussions toward enhancing utility signifies a broader trend in crypto communities, emphasizing the importance of utility-driven value creation over relying solely on token-burning mechanisms for price appreciation.

To learn more about Shibarium’s leading DApp expanding Bone & Leash utility, read here:
Here’s How Shibarium’s Leading dApp Expands BONE, LEASH Utility

To delve into the story of the Shib whale flipping 17.5k Bone amidst Binance listing whispers, read here:
SHIB Whale Flips 17.5K BONE Amidst Binance Listing Whispers

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Tags
Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.