According to data shared by the Shibburn tracker in a recent tweet, overnight burns of Shiba Inu have shown a catastrophic decline to less than 10 million meme coins burned in merely five transactions.
Meanwhile, on Monday, two different members of the Shiba Inu developer team made statements about burning SHIB, contrary to each other.
Burn rate down for second consecutive day
Shibburn's website shows the rate at which the SHIB army has been disposing of the SHIB supply. Within the period of the last 24 hours, only a total of 9,428,381 SHIB was transferred to dead wallets.
The burn rate is down 82.27% because of these low burns so far. On Monday, this important metric was also in the red, minus nearly 100%.
Burns are necessary for reducing the circulating supply of a coin. Mostly this technique is used by meme coins — Shiba Inu, BabyDoge and a few others. However, large amounts of Ethereum and BNB are burned on a regular basis, too. Burning basically means moving coins to unspendable wallets from whence they cannot be withdrawn back or used for purchasing things.
However, despite approximately half of the circulating SHIB supply being gone in burns already (that is half a quadrillion meme coins), the price has not been impacted by this.
Here’s what Shytoshi Kusama and SHIB's marketing expert said about burns
On Monday, the marketing expert of the SHIB team, known on X app as @LucieSHIB, wrote in her post that Shibarium can be even more useful for SHIB burns than stated previously. This is how the burn mechanism works on Shibarium; users pay gas fees in BONE tokens to conduct transactions. A portion of these fees is set aside to be converted into SHIB later on and then burned, when a hefty sum builds up.
However, Lucie stated that over time, Shibarium gas fees may start growing as the number of users of this Layer 2 solution grows too. In this case, more BONE would be set aside for SHIB burning.
As for the leader of the Shiba Inu team, the pseudonymous Shytoshi Kusama, he recently stated that adoption is more important than SHIB burns. Kusama stated that burns have their place and are certainly important. However, he believes that the greater success of SHIB and Shibarium lies in the greater adoption of the newly released blockchain.