The Shiba Inu burn tracking website Shibburn recently revealed how many SHIB tokens were burned in September. The combustion rate witnessed an impressive increase compared to the number of tokens burned the previous month.
Shiba Inu burn rate peaks in September
Shibburn revealed in an X-post that nearly 2.4 billion Shiba Inu tokens ($42,069) were burned in September with 131 transactions. This represents a 249% spike in monthly burn rate 680 million SHIB tokens were burned in August. This is a positive development for the Shiba Inu ecosystem, considering the impact the token burns could have on the price of SHIB in the long term.
The peak in Shiba Inu monthly burn rates in September is believed to be due to the impressive run which the meme coin had last month. This boosted investor confidence in collecting the meme coin in September.
The accumulation trend of Shiba Inu whales ultimately led to more SHIB tokens being burned, as some transaction fees are reserved for redemptions and burns. Interestingly, despite this milestone, the SHIB ecosystem was able to manage this milestone in burn rate Shibarium’s daily transactions remains flat throughout September.
Meanwhile, it remains to be seen whether October’s Shiba Inu burn rate could surpass September’s performance. The burn rate has not gotten off to a good start this month. Shibburn data shows burn rates have fallen by more than 93% over the past seven days. The Shiba Inu burn rate has also stalled in the last 24 hours, with 572,837 SHIB tokens burned during this period, representing a 78% drop.
The decline in SHIB’s burn rate is likely due to the current bearish sentiment in the broader crypto market. The ‘Uptober’ rally has not gone as planned so far, so investors are wary of accumulating more tokens, including SHIB. However, a price recovery across the board could eventually lead to a spike in Shiba Inu trades and burn rates.
On-chain metrics also paint a bearish picture
Shiba Inu’s on-chain stats also outlines a bearish outlook for the meme coin. Facts The market information platform IntoTheBlock shows that there is a decline in the number Shiba Inu holders in the money. This is important because a significant price drop for the meme coin could trigger a wave of sell-off, leading to more downward pressure.
The concentration metric is also bearish, indicating Shiba Inu whales are currently losing their holdings rather than collecting more tokens. SHIB’s net network growth has also stagnated, with the number of new daily addresses still within the same range.
Amid these bearish on-chain metrics, it’s worth mentioning that Shibarium recently achieved a notable feat: the total value of network locked (TVL) rose to over $7 million.
At the time of writing, Shiba Inu is trading around $0.000016, up more than 1% in the last 24 hours, according to facts from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com