Shiba Inu (SHIB) Burn Rate Spikes 249% in September as Whales Accumulate

The Shiba Inu burn tracking website Shibburn recently revealed how many SHIB tokens were burned in September. The burn rate witnessed an impressive surge

Shiba Inu (CRYPTO: SHIB) burn tracking website Shibburn recently revealed the total number of SHIB tokens that were burned in September. The burn rate also witnessed a huge spike compared to the previous month.

Here's what happened

Shibburn noted in an X post that nearly 2.4 billion SHIB tokens ($42,069) were burned in September, across 131 transactions. This marks a 249% spike in the monthly burn rate, considering 680 million SHIB tokens were burned in August.

The development comes as a positive sign for the Shiba Inu ecosystem, considering the impact that the token burns could have on SHIB’s price in the long term.

The spike in Shiba Inu’s monthly burn rate in September could be attributed to the impressive run that the meme coin had in the last month.

This led to a positive sentiment among investors who might have been accumulating the meme coin throughout September.

The accumulation trend by Shiba Inu whales ultimately led to more SHIB tokens being burned since some transaction fees are reserved for buybacks and burns.

Interestingly, the SHIB ecosystem was able to manage this burn rate milestone despite Shibarium’s daily transactions remaining flat all through September.

Meanwhile, it remains to be seen if the Shiba Inu burn rate in October could surpass the September feat.

The burn rate this month hasn't gotten off to a great start. Shibburn data shows that the burn rate has dropped by over 93% in the last seven days.

The Shiba Inu burn rate has also stalled in the last 24 hours, with 572,837 SHIB tokens burned during this period, indicating a 78% decline.

The drop in SHIB’s burn rate could be linked to the current bearish sentiment in the broader crypto market.

The ‘Uptober’ rally hasn't gone as planned so far, leading investors to be wary about accumulating more tokens, including SHIB.

However, a price recovery across the board could ultimately lead to a spike in Shiba Inu’s transactions and the burn rate.

Shiba Inu's on-chain metrics also paint a bearish outlook for the meme coin.

Data from market intelligence platform IntoTheBlock shows that there has been a decline in the number of Shiba Inu holders in the money.

This is significant as a large price drop for the meme coin could spark a wave of sell-offs, leading to more downward pressure.

The concentration metric is also bearish, indicating that Shiba Inu whales are currently offloading their holdings rather than accumulating more tokens.

Moreover, SHIB’s net network growth has remained largely stagnant, with the number of new daily addresses still within the same range.

Amid these bearish on-chain metrics, it is worth noting that Shibarium recently achieved a new milestone.

The network’s total value locked (TVL) surged past $7 million, as reported earlier by Benzinga Crypto.

At the time of writing, Shiba Inu was trading at around $0.000016, up over 1% in the last 24 hours, according to data from CoinMarketCap.

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