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According to the latest update from the Shibburn platform, the burning of SHIB tokens has experienced a significant decline. This drop occurred despite the increase in SHIB prices over the last 24 hours. Consequently, the crypto community is pondering whether there is an inverse correlation between burning and price. Let’s look at the developments.
Decrease in SHIB Burn Rate
The most recent update from the Shibburn website shows a significant decrease in the SHIB burn rate over the last 24 hours. The SHIB community caused a surprising 56.43% drop in the burn rate by burning only 1,255,916 SHIB, compared to the previous day. This happened especially during a period when 2,800,000 Shiba Inu meme coins were transferred to non-spendable Blockchain wallets the day before.
A large portion of the total 868,708 and 166,103 SHIB was burned in just two transactions, and in both cases, the tokens were directed to wallets where they are unusable. This significant drop contrasts with the substantial burn rate observed on January 25, which reached an impressive rate of 4,240% with a cumulative burning of 15,712,916 SHIB.
Introduction of the Automatic SHIB Burn Mechanism
Despite the recent drop in burn rates, the Shiba Inu team has announced plans for a new era of SHIB burning. The development team is in the process of transitioning the Shibarium burn mechanism from manual to automatic, starting with the Puppynet test network. This transition is planned to eventually spread to the main network.
Simultaneously, SHIB developers are actively transitioning Puppynet from Ethereum’s Goerli network to Sepolia, provided by the same Blockchain. These automation and network transitions represent strategic steps aimed at increasing the efficiency and scalability of SHIB burn mechanisms.
Previous Major Burn Events and User Participation
From November to January, the SHIB team led by prominent developer Shytoshi Kusama destroyed over 40 billion SHIB in an effort to reduce the circulating supply of the Shiba Inu meme coin. These burn events were financed by transaction fees paid in BONE on Shibarium.
While a portion of these fees is set aside to maintain the operational integrity of Shibarium, another part contributes to reducing the circulating supply of Shiba Inu by converting BONE tokens into SHIB. With a proactive approach, the developers had previously announced a reserve of BONE worth 1 million dollars ready for burning. Despite suggestions from the community to burn BONE as well, Shytoshi Kusama clarified that only SHIB tokens could be burned.
The recent decrease in SHIB burn rates, combined with ongoing developments and transitions, adds complexity to the narrative of Shiba Inu’s market dynamics.
