Shiba Inu (SHIB) Burn Rate Declines By 100%, Here's What It Means

The Shiba Inu (SHIB) burn rate has again tumbled with the number of tokens burned in the last 24 hours, painting a bearish picture for the meme coin.

The Shiba Inu (SHIB) burn rate has again tumbled with the number of tokens burned in the last 24 hours dropping to zero.

This marks a significant decline in the burn rate, as there were 802,246 tokens burnt on August 13, according to data from the burn tracking website Shibburn.

Notably, there have been no tokens burned in the past three days, despite the recent transition of Shibarium to an automated burn mechanism.

As reported by U.Today earlier this month, 70% of base transaction fees earned on the layer-2 network are automatically converted to SHIB and burned.

However, network activity on Shibarium has declined substantially since its launch, with daily transactions ranging between 3,000 and 8,000 in the last month.

This decline in network activity has impacted the transaction fees earned by the layer-2 network, which are currently way below the levels recorded earlier this year when Shibarium processed an average of 5 million daily transactions.

For instance, Shibarium earned 6.8 BONE ($2) in transaction fees on August 15, which is not enough to implement automated daily token burns.

Shiba Inu’s on-chain metrics also paint a bearish picture for the meme coin, with a decline across the board.

Data from the market intelligence platform IntoTheBlock shows that the meme coin’s large transactions are down by over 14%, indicating a lack of interest among SHIB whales.

The percentage of Shiba Inu holders currently in the money has also dropped to 45%, with most holders currently holding at a loss.

Meanwhile, the net network growth is still declining, as there is a lack of new investors in the Shiba Inu ecosystem.

At the time of writing, Shiba Inu is trading at around $0.00001338, down almost 2% in the last 24 hours, according to data from CoinMarketCap.

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