In the past week, Shiba Inu has burnt over 98 million SHIB tokens from circulation through thirty-six separate transactions.
The highest burn occurred on February 13th when an anonymous Binance client sent a whopping 39 million SHIB to the dead wallet through seven transactions.
Typically, SHIB Super Store plays a significant role in weekly burns.
According to the tweet, the particular burn project declared that it had used the official SHIB Burn Portal to light a total of 8,775,205 [8.77 million] SHIB.
But this is nothing compared to the burn rate of over 10000% in the last month.
The popular meme coin kickstarted 2023 with nearly half a billion tokens burned in 3 days but as Feb dawned, SHIB burns have significantly reduced.
Last week, in particular, not a lot of SHIB was eliminated from the circulating supply. Data from Shibburn revealed that a total of 98,282,540 SHIB tokens were burned over the last 7 days.
There may be a variety of causes for the declining burn rate. One of them might be that the token’s price has reversed from its recent high and is now back at the level it was at the start of February.
Other noteworthy factors include a decline in network activity and the absence of drivers for assets like Shiba Inu which is yet to be connected to any trending areas of the crypto industry.
The quantity of tokens taken out of circulation in a blockchain network is known as the burn rate. The lack of network activity has significantly reduced the burn rate of Shiba Inus.
This could signal that fewer people are using the network or that investors are becoming less interested in the coin.
Still, the community hopes that the arrival of the highly awaited layer-2 scaling protocol Shibarium could trigger more burns.
Shiba Inu: All Is Not Lost Yet
According to Into The Block, the total number of long-term holders is increasing, while the number of short-term holders is decreasing.
Over 60% of addresses had been holding SHIB for more than a year. Last year, 31% of holders participated in the ecosystem.
Moreover, SHIB has only been in the wallets of 4% of holders for less than a month. This would indicate that investors are anticipating for the token to rise.