The Shiba Inu burning initiative continues this week, but with a drastic drop in volume. The latest figure showing reduced investor participation could have significant long-term implications for the SHIB price.
SHIB burn rate drops from 7,700% peak
Over the past 24 hours, Shibburn has shown that the SHIB burn rate is less than encouraging. The burn tracker revealed that a total of 106.72 million tokens were burned in the 23-hour period, which is a significant drop of almost 60% from the previous day’s figures.
What’s interesting is not just the fact that the Shiba Inu’s burning rate dropped, but also how far it dropped. By the end of the weekend, the burn tracker had noticed a spike of over 7,700% in the burn rate, making the current slowdown concerning.
Source: Shibburn
There were only five total transactions in the last 24 hours that burned SHIB, with one wallet “0x75d9” doing most of the work at this point. The wallet address alone contained 100 million tokens, accounting for approximately 98% of the total burn figure. As of this writing, not a single Shiba Inu burning transaction has taken place during the eight-hour delay.
However, there is an increase on the weekly chart, indicating that the current slowdown may be limited to just a 24-hour period. Shibburn shows an increase of 151.4% over the past seven days, pushing the total figure burned above 620 million.
SHIB bears tussle with bulls for control | Source: SHIBUSD on Tradingview.com
Shiba Inu holds rally
Despite the decline in burn rate, Shiba Inu prices remain determined to move in the opposite direction. The price of the altcoin crossed the $0.000008 mark and bulls have demonstrated a strong hold on the coin. This has resulted in an increase of 11.75% in the past day, compared to an increase of 9.38% in the past week.
However, daily volume for the digital asset is down 14.75%, so it could mean this rally is destined to be short-lived. However, if SHIB price can hold above the 50-day moving average, it will provide the momentum needed to continue the rally.
The recovery is also closely linked to the recovery of the Bitcoin price, meaning that a drop in Bitcoin could also mean a drop in the SHIB price. So, the Bitcoin price will be important to keep an eye on to determine SHIB’s next steps.
Currently, SHIB is trading at $0.00000804. with a market cap of $4.74 billion, it is the 19th largest cryptocurrency in the space.
