The Shiba Inu burn rate has seen a notable spike over the past 24 hours, signaling a turning point in the SHIB burn. However, despite this notable spike, it’s not exactly the most encouraging burn considering the number of coins burned. This report dives into the Shiba Inu burns over the past day and shows why even the large spike in burn rate isn’t much to be excited about.

Shiba Inu Burn Rate Jumps 1,088.66%

Data from Shiba Inu burn tracking website Shibburn shows that the SHIB burn rate is up again. This time there is a significant 1,088% increase in burn rate over the 24 hour period, thanks to a single transaction during this time.

In contrast to the positive increase in burn rate, the meme coin still faces a lot of struggle when it comes to reducing its supply. The single transaction that caused the spike in burn rate carried 98,136 SHIB, which is the only burn transaction recorded in a single day. This means that a total of 98,136 SHIB tokens were burned in this one-day period.

To put this into perspective, at the current Shiba Inu price of $0.00001373, this means that only $1.34 worth of SHIB tokens have been burned in the past day. What’s worse is that the large spike caused by this one transaction is the fact that the burn rate has drastically derailed over the course of the week.

First, the last burn transaction for this trade was three days ago. Even then, there were only three transactions recorded for the entire day. On a broader scale, looking at the entire week, there were only 22 burn transactions completed for Shiba Inu in the 7-day period.

In these 22 burn transactions, the total SHIB tokens burned came to 8.54 million tokens. At the current SHIB price, this equates to less than $120 worth of tokens burned in seven days. It is also a 94.4% decrease from the previous week’s figures.

What happens to the burn?

The drop in the Shiba Inu burn rate is alarming considering how quickly the burn rate was moving earlier this year. Last week, Bitcoinist reported that the SHIB burn rate had dropped by 100% in a single day, meaning no burns were performed.

In an effort to keep the burn rate going, the Shiba Inu team had announced earlier in August that automated SHIB burns had been implemented on the Ethereum Layer 2 network, Shibarium. While this would certainly be good news, it has been disappointing considering the performance of the Shibarium network. It is currently the worst performing Ethereum Layer 2 network, and with no fees generated, the automated burns have come to a standstill.

Amidst this, the Shiba Inu community has taken another step in an attempt to reduce the meme coin’s supply. A petition has been started asking the Binance exchange to start burning SHIB tokens in the same manner as LUNC tokens. However, the petition has not caught the attention of Binance, as it only had 1,383 signatures at the time of writing.

Main image created with Dall.E, chart from Tradingview.com