On September 16, the leading memecoin, Shiba Inu, faced a major setback in its deflationary metric, according to fresh on-chain data shared by renowned blockchain tracking platform, Shibburn.
According to the data provided by the tracker, the SHIB burn rate has moved in an unusual direction, showing a sharp decline of 57.88% over the last 24 hours. The data, which appears concerning to the SHIB community, shows that only 69,420 SHIB tokens were burned in the last day.
It is important to note that SHIB burns are regular measures taken by the SHIB team to permanently remove certain quantities of SHIB from circulation.
While this is done by sending SHIB tokens to dead or inaccessible wallets, it is a decisive action taken to consistently reduce the asset’s circulating supply, thereby fueling scarcity for the token.
SHIB stabilizes at $0.00001308
The negative trend in SHIB’s deflationary metric comes amid a broad crypto market rebound, where prices of leading cryptocurrencies are seen moving on an upside trajectory. However, the price of SHIB has only shown a decent surge of 1.48% over the last day, sparking debates among the crypto community.
While other cryptocurrencies have shown notable increases in their daily gains, investors are worried that the negative trend in the Shiba Inu burn metric might have caused a slowdown in the token’s potential ascent.
Further data shared by the tracker shows that the decline in the key metric was even more pronounced on its 7-day chart. Notably, the token has seen just 2,741,316 SHIB sent out of circulation over the last week, marking a decrease of 87.11%.
With this data showcasing a slowdown in burn activity over a long period, it appears that the demand for the asset might have reduced significantly during the period. Thus, the overall SHIB tokens removed from its total circulation stand at 4.5 trillion, marking the difference between all SHIB supply and the amount of SHIB actively circulating.
Following the resistance in SHIB’s price movement during the period, the asset was spotted trading steadily at $0.00001320, reflecting a 1.48% increase over the last 24 hours.
While declines in SHIB’s burn activities have often been followed by brief price corrections in the asset’s price, investors have shown concern about the sustainability of the ongoing SHIB rally amid the declining burn metric.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team