Why Shiba Inu’s burn rate falters despite Shibarium hype

• Shibarium’s daily transactions dropped to around 40,000.
• SHIB trades with an over 1% loss after the previous day’s gain.

Shibarium is being hailed as a potential trigger for an upward trend in the price of Shiba Inu [SHIB], especially as the rate of SHIB burning gains momentum within the network. How has the performance of Layer 2 (L2) been so far, and what is the recent rate of token burning?

Read Shiba Inu (SHIB) Price Prediction 2023-24

Shibarium transactions slow down

In a recent post by an enthusiastic Shiba Inu supporter, Shibarium has amassed more than 1.2 million wallets. Also, it has completed over 2.9 million transactions.

While these figures are noteworthy, especially considering when Shibarium was relaunched, a closer examination revealed a decline in transaction activity.

Data from the Shibarium scanner indicated a decrease in the number of daily transactions on the L2. As of this writing, the number of daily transactions has fallen to approximately 40,000. 

This was a significant drop from the over 100,000 transactions observed on the platform between 8 September and 14 September. While the total number of transactions continued to rise, the decrease in daily transaction volume suggested a slow growth.

Consequently, this implied that the burn rate of SHIB tokens would be sluggish. Also, the expected impact on the token’s price would also be gradual.

Shiba Inu’s burn rate declines

According to data from Shibburn, a total of 31.2 million tokens were burned in the past 24 hours. However, despite this substantial volume of burning, the data showed a decline of more than 58% in the burn rate over the same period.

Over the last seven days, more than 427 million tokens were burned, but the burn rate also saw a decrease of over 10% during that time frame. 

These observations suggest that significant burns are not yet being generated from activities on Shibarium, indicating that its impact on SHIB’s burn rate and price trend has yet to become pronounced.

How much are 1,10,100 SHIBs worth today

Shiba Inu trapped in a bear trend

Looking at the daily timeframe chart of Shiba Inu, it initially experienced a notable increase in price, gaining over 2% by the close of the previous trading session. Nevertheless, this gain has been eroding slowly.

As of this writing, SHIB was trading at a loss of more than 1.3%. This decline in price has also halted the upward movement towards the neutral line that was previously observed on its Relative Strength Index. Consequently, this indicates that SHIB is currently trapped in a bearish trend, with the price decline firmly in place.

Source: TradingView