Shiba Inu Burn Rate Sees 81% Daily Increase, But Why Is Participation Low?
The Shiba Inu burn rate has seen another daily increase, which is a welcome development for the community. However, the figures being burned paint another picture, especially when it comes to participation from Shiba Inu holders in the SHIB burning initiative.
Shiba Inu Burn Rate Rises 81%
The Shiba Inu daily burn rate saw a significant uptick, rising an impressive 81% in a single day. While this surge is a positive for the meme coin, the number of tokens burned to cause this surge are far from impressive.
According to data from the Shiba Inu burn tracking website Shibburn, a total of 4.64 million SHIB tokens were burned in the last day. To put this in perspective, the total value of the tokens burned for the day is around $105.
Additionally, given that this constitutes an 81% increase, it means an even smaller amount of tokens were burned the prior day. Shibburns records show that the previous day saw a total of 1.9 million tokens burned, which is around $45 worth of coins.
This drastic decline in the number of coins being burned on a daily basis suggests muted participation from investors. This could be directly tied to Shiba Inus price struggle over the last few weeks, which has seen investors take a more conservative stance to protect their positions.
SHIB Price Crashes 21%
The Shiba Inu burn rate is not the only thing that has been seeing a decline in the last week, its price has also taken a hit. According to data from the token tracking platform Coinmarketcap, the Shiba Inu price is down 15% in the last week alone.
As a result of this 15% decline, the SHIB price has now dropped to $0.000023, which also represents a 50% drop from its March peak of $0.000044. However, its daily trading volume has seen a bullish reversal, rising 12% in the last day to $645 million. A rise in volume can often signal a return in interest to a cryptocurrency. If this is the case, then the Shiba Inu price may be headed for a reversal as investors start to place their bets once more.
At the time of writing, the SHIB price is still trending at $0.0000228, showing small daily gains of 4%. However, despite the negative headwinds the meme coin has experienced, it continues to maintain a market cap above $13.5 billion, which makes it the 11th-largest cryptocurrency in the market, ahead of the likes of Avalanche and Polkadot.
SHIB price at $0.0000228 | Source: SHIBUSDT on Tradingview.com
Featured image from Bitcoin News, chart from Tradingview.com
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Source: NewsBTC.com
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