Why Shiba Inu’s surging burn rate has sparked concerns
- SHIB’s burn rate spiked to over 7,000% on 17 July.
- SHIB’s price was on a three-day consecutive downtrend as it lost over 1%.
According to a tracking site, the burn rate of Shiba Inu [SHIB] has been on a downward trend of late. Nevertheless, within the last 24 hours, there was a remarkable surge in the burn rate, raising concerns about the impact on other metrics.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
Shiba Inu burn rate spikes
On 17 July, Shiburn revealed that Shiba Inu experienced a staggering burn of over 91 million tokens. This impressive volume translated to an extraordinary burn rate of over 7,000% within the last 24 hours.
HOURLY SHIB UPDATE$SHIB Price: $0.00000785 (1hr -0.35% ▼ | 24hr -2.37% ▼ )
Market Cap: $4,613,494,254 (-2.59% ▼)
Total Supply: 589,348,488,567,083
Past 24Hrs: 91,668,357 (7329.72% ▲)
Past 7 Days: 256,556,227 (-78.28% ▼)
— Shibburn (@shibburn) July 17, 2023
This occurrence stood out because the burn rate had consistently shown negative values in the days leading up to 16 and 17 July. As of this writing, the burn rate has returned to negative territory, with approximately 22 million tokens burned.
Additionally, the weekly burn rate remained negative, with around 208 million tokens burned over the past seven days.
Impact on other metrics?
In light of the surge in the burn rate, an examination of the volume metric, as provided by Santiment, was conducted to gain insights into Shiba Inu’s transactions. Upon analyzing the volume metric, it became evident that there was no noteworthy spike in SHIB’s volume.
The only spike observed was between 13 July and 16 July, when several other altcoins experienced an increase in their trading activities. The volume spiked to over 200 million and 100 million during these periods, respectively.
However, at the time of writing, the volume stood at approximately 87 million, suggesting a lack of significant trading activity.
Interestingly, a notable event occurred a few days ago involving a substantial transaction by a major player in the market. Whale Alert, a blockchain-tracking service, reported that a high-net-worth investor transferred over 4 trillion SHIB tokens, equivalent to $32.86 million, on 14 July.
— Whale Alert (@whale_alert) July 14, 2023
This significant movement involved transferring the tokens from one undisclosed wallet to another, adding an air of mystery to the transaction.
SHIB trend weakens
Analyzing the daily timeframe chart of Shiba Inu, it became evident that the asset had experienced losses throughout the last three trading sessions. Shiba Inu was trading with a loss of over 1% as of this writing.
How much are 1,10,100 SHIBs worth today?
Additionally, the Moving Average Convergence Divergence (MACD) indicator indicated a weakening trend. The Relative Strength Index (RSI) further confirmed the negative trend of SHIB, with the RSI line declining and hovering around the neutral line.
If the price continues to decline, it could transition into a bearish trend, signaling further downward movement.