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Weekly SHIB Burn Falls to Lowest Number, Here Might Be Reason

Sun, 11/13/2022 - 14:29
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Tomiwabold Olajide
Number of transactions carrying SHIB to be burned has drastically declined
Weekly SHIB Burn Falls to Lowest Number, Here Might Be Reason
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Shiba Inu's weekly burn is down to its lowest levels in months, as only 99,774,731 SHIB tokens were burned in the past seven days and 18 transactions were made. In the past, this represented the amount that would have been burned in a day. This was also less than the previous week, when 197,799,286 SHIB were burned, according to U.Today.

SHIB burning has decreased in recent months as the effects of the cryptocurrency bear market have taken their toll. The past week, described as one of the worst in crypto history, was a chaotic one, with crypto prices taking a drastic decline following the shocking news of the FTX implosion.

Bahamas-based FTX filed for bankruptcy on Friday after a rescue deal with rival exchange Binance fell through, precipitating crypto's highest-profile collapse in recent years.

This might have partly led to the low numbers recorded in SHIB burning for the week. In the last 24 hours, a meager 2,045,478 SHIB tokens were burned in just two transactions.

Amid the crisis brought on by the FTX implosion, the Shiba Inu team has put out reassuring words for the SHIB community: "We stand here with you as we continue to grow and work together for a brighter future in which decentralization and DeFi innovations create new opportunities for the people, and we invite every crypto community to join us in this effort."

"Hodling" seems to be new shift

Notably, not only did the amount of SHIB burn decline, but the number of transactions carrying SHIB to be burned has drastically declined. This would in a way bring up a new shift that seems more apparent: "hodling."

SHIB Burn Rate Up 5,800% as Shiba Inu Sets Key Milestone

According to IntoTheBlock data, Shiba Inu is seeing the largest percentage of long-term holders, or "hodlers," which is currently 51%. This proportion of holders has grown in recent months to surpass both short- and midterm holders.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.