The number of burnt tokens is increasing, but at the same time it might not be enough
Even though Shiba Inu ended last year with extremely low network activity, like any other block chain there, the meme currency burn rate has dropped to an extreme 25 million SHIB per day. Fortunately, we are seeing a recovery trend.
According to Shibburn, in the past 24 hours, over 90 million Shiba Inu tokens have been burned by various addresses, which is an increase of 35%. As cryptocurrency market activity picks up, we should see a gradual increase in the number of tokens destroyed.
Thirteen hours ago, an anonymous address burned 76 million SHIB tokens, making it the largest amount of meme assets burned in the last 24 hours. Unfortunately, for the burn operation to have a noticeable effect on the market, Shiba Inu investors would need to burn around a billion tokens.
The lack of engraving volume is explained by the almost non-existent use of the Shiba Inu network. Merchants who accept SHIB tend to burn big bucks when they manage to get decent trading volume, which doesn’t happen often given the dwindling popularity of the meme coin and crypto payouts in general.
However, the lack of traction in the market that we are seeing today is temporary, and the burning volume of Shiba Inu may recover, with the general return of entries into the industry and the popularization of cryptocurrencies as methods of payment. .
For example, Shiba Inu’s trading volume remained at around $32 billion while the token traded on the ATH. Throughout 2022, it has gone down to just $5 billion, which explains the drastic decrease in burning volume. The correlation between the two measures is obvious.
