SHIB Burns Plunge to Near Zero as Price Slides – What’s Behind Shiba Inu’s Decline?

Shiba Inu’s burn rate has plunged to nearly zero, and its price is following suit. Despite these negative trends, SHIB remains a topic of interest, leaving investors questioning the factors behind its recent decline.

SHIB Burns Fall to Record Lows

The second-largest meme cryptocurrency, Shiba Inu, has been seeing negative readings on a daily and weekly basis, according to the Shibburn token tracker, which tracks SHIB burn transactions.

In contrast, the price of SHIB has been rising sharply during the last two days and the past 24 hours, displaying completely opposing trends. An astounding 13.3% gain has been recorded by SHIB since Thursday.

Burn Rate Declines Despite Temporary Price Surge

A tweet from Shibburn states that 2,600,481 SHIB meme currencies were burned, or sent to unspending blockchain wallets, in the last 24 hours, bringing the burn rate down 42.39 percent.

As of this morning, six burn transactions have been recorded on the website. One million SHIB and 1,143,510 SHIB were sent to invalid addresses by the two largest ones.

A little over four million SHIB were burned and stored in "inferno" wallets on Friday, U.Today notes.

Weekly SHIB Burn Rates Plummet Nearly 100%

Regarding the weekly burns, the tweet mentioned that there has been an almost 100% drop in the burn rate over the last seven days. The total number of meme coins that were burned is 26,638,951 SHIB. Compared to a week ago, that is a decrease of 98.68%.

Shibarium’s Low Transaction Volume Linked to SHIB Burn Decline

Shibarium, a Layer-2 blockchain that became live at the end of August last year, has now been linked to Shiba Inu burns. At this time, Shibarium does not have a very large volume of daily transactions. About 4,550 people make up the group as of October 4th.

The previous day, there were only 3,800 on-chain transfers; this is a 19% increase. With 7,500 transactions recorded on October 2nd, this measure was significantly higher. The most recent all-time high was 11,230 transactions per day on September 27.