- ShibaInu (SHIB) has experienced a sharp decline in its daily burn rate, with only 320,814 tokens destroyed, raising concerns among investors.
- Despite this, SHIB’s price remains stable, while trading volume has dropped, reflecting cautious market sentiment.
ShibaInu Burn Rate Slows Drastically
The ShibaInu (SHIB) ecosystem has seen a sharp decline in its daily token burn rate, raising concerns among investors. According to Shibburn, an on-chain tracking platform, only 320,814 SHIB tokens were destroyed today. This marks a significant drop from the millions, sometimes billions, of SHIB tokens previously burned daily.
Despite a 32% increase in the daily burn rate, the total amount of ShibaInu burned remains relatively low, suggesting a potential shift in investor sentiment. This decline in burn activity may indicate that SHIB holders are opting to hold rather than burn their tokens amid market uncertainties.
What’s Causing the Low SHIB Burn Rate?
The reasons behind the reduced burn rate remain speculative. Some analysts believe that SHIB holders might be preparing for a potential price surge by holding onto their tokens instead of burning them. Additionally, broader market skepticism could be influencing the reduced activity, as traders stay cautious amid volatile market conditions.
The reduced SHIB burn rate could also be a result of decreased demand for the token, as fewer traders engage in burn initiatives, a trend that contrasts with the token’s history of consistent and massive burns.
SHIB Price Remains Stable Despite Declining Volume
Interestingly, despite the slow burn rate, SHIB has shown resilience in its price movement. The token recorded a minor 0.25% price increase over the last 24 hours, trading at $0.001264, according to CoinMarketCap.
However, trading volume has remained in the red, with a 4.02% decline. This suggests a slowdown in market activity, with both small and large traders appearing dormant.
Potential Bullish Outlook Amid Market Recovery
Despite the concerning burn data, SHIB holders remain optimistic. As the broader cryptocurrency market returns to the green zone, there is renewed hope for a bullish breakout in SHIB’s price. Investors are now closely monitoring the token for signs of a potential upward surge.
