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Dog-themed cryptocurrency Shiba Inu recently experienced a remarkable surge in its burn rate, a strategy aimed at lowering SHIB's total supply while potentially increasing long-term value. However, after a period of increase, Shiba Inu's burn rate has now taken a breather, settling at just 1.97% in the last 24 hours.
Yuri MolchanAccording to the Shibburn X account, 15,050,787 SHIB were burned in the last 24 hours, marking a 1.97% increase in the daily SHIB burn rate. The day before last saw a 795.3% surge in burn rate, while the last seven days saw 94,207,386 SHIB burned, contributing to a 59.37% increase within this time frame.
With a substantial amount of SHIB burned in the last seven days, the drop in daily burn rate might be a temporary breather as market momentum stalls.
Considering this, the Shiba Inu community is keeping a close eye on future burn events, waiting to see a return in aggressive SHIB burns.
Market momentum stalls
According to leading on-chain data provider Glassnode, the market's momentum has slowed following an attempt to push Bitcoin to price discovery. Bitcoin has fallen 5.9% since February, while ETH and SOL have declined by 16.9% and 33.1%, respectively.
Meme coins, which climbed 90.2% in late 2024, have experienced the greatest drop, falling 37.4%, coinciding with a decline in open interest.
Arman ShirinyanAccording to Glassnode, Futures Open Interest across the meme coin sector has dropped significantly since their peaks. Open Interest is the total number of outstanding futures or options contracts on a market. It indicates the current trading activity and speculative behavior on the market. It may also be used to determine market liquidity.
According to a recent Glassnode analysis, the DOGE Futures Open Interest seven-day moving average fell by 58.45%, from $3.58 billion, on Dec. 9, 2024, to $1.49 billion. Other meme coins performed similarly; SHIB, albeit with lower total OI, also experienced declines. SHIB open interest fell 74.41%, from $323 million to $83 million. This can point to leverage flushing out but also signal a shift in sentiment across the meme coin sector.
At the time of writing, SHIB was down 0.06% in the last 24 hours to $0.00001545 and down 4.73% weekly. SHIB has declined over 18% so far in February.
Dan Burgin
Vladislav Sopov