The Shiba Inu token burning tracking platform Shibburn recently disclosed the total number of SHIB tokens incinerated in September. The burn rate experienced a remarkable increase compared to the prior month’s figures.
Shiba Inu Burn Rate Surges in September
Shibburn announced in a post on X that nearly 2.4 billion Shiba Inu tokens (equivalent to $42,069) were burned in September across 131 transactions. This reflects a whopping 249% rise in the monthly burn rate, as 680 million SHIB tokens were incinerated in August. Such a development is favorable for the Shiba Inu ecosystem, particularly regarding the potential long-term effects of token burns on SHIB’s price.
The remarkable increase in Shiba Inu’s monthly burn rate in September is thought to be attributed to the strong performance the meme coin experienced during that month, boosting investor confidence in acquiring additional tokens throughout September.
The trend of accumulation by Shiba Inu whales led to a higher number of SHIB tokens being burned since some transaction fees are earmarked for buybacks and burns. Notably, the SHIB ecosystem managed to sustain this burn rate achievement even though Shibarium’s daily transactions remained steady throughout September.
It is uncertain whether the Shiba Inu burn rate in October will exceed the September numbers. The burn rate for this month has not started strong, as Shibburn data indicates a decline of over 93% in the past seven days. Additionally, the Shiba Inu burn rate has also plateaued in the last 24 hours, with 572,837 SHIB tokens burned, representing a 78% reduction.
The drop in SHIB’s burn rate is likely a reflection of the current bearish atmosphere in the wider cryptocurrency market. The anticipated ‘Uptober’ rally has not progressed as hoped, prompting investors to be cautious about accumulating more tokens, including SHIB. However, a recovery in prices across the board could potentially stimulate a surge in Shiba Inu transactions and increase the burn rate.
Bearish On-chain Metrics Evident
Shiba Inu’s on-chain metrics also suggest a bearish outlook for the meme asset. Data from the market analytics site IntoTheBlock reveals a reduction in the number of Shiba Inu holders who are presently in profit. This is critical as a significant price drop for the meme coin could trigger a wave of sell-offs, exerting additional downward pressure.
The concentration metric also reflects a bearish sentiment, indicating that Shiba Inu whales are offloading their holdings rather than increasing their positions. Moreover, SHIB’s net network growth has remained stagnant, with the number of new daily addresses not showing significant variation.
In light of these negative on-chain indicators, it is noteworthy that Shibarium recently achieved an impressive milestone: the total value locked (TVL) in the network surpassed $7 million.
At the time of this writing, Shiba Inu is trading at approximately $0.000016, reflecting over a 1% increase in the last 24 hours, according to data from CoinMarketCap.
Featured image generated by Dall.E, chart from Tradingview.com
