The Shiba Inu burn initiative continues this week but with a drastic decline in volume. The latest figure which shows a decreased participation from investors could have long-running significant implications for the SHIB price.
SHIB Burn Rate Drops From 7,700% Spike
Over the last 24 hours, Shibburn has shown that the SHIB burn rate has been less than encouraging. The burn tracker revealed a total of 106.72 million tokens burned in the 23-hour period, which is a significant decline of almost 60% from the prior day’s figures.
Now, the interesting thing is not just the fact that the Shiba Inu burn rate plunged but how far it plunged. Coming out of the weekend, the burn tracker had flagged an over 7,700% spike in the burn rate, which makes the current deceleration concerning.
Source: Shibburn
There were only a total of five transactions that burned SHIB in the last 24-hour period, with one wallet “0x75d9” doing the majority of the work at this time. The wallet address alone had 100 million tokens, accounting for around 98% of the total burn figure. At the time of writing, there has not been a single Shiba Inu burn transaction in the last 8 hours amid the slowdown.
However, there has been an uptick on the weekly chart which suggests the current deceleration might be localized to just the 24-hour period. Shibburn shows an increase of 151.4% over the last 7 days, bringing the total burned figure to above 620 million.
SHIB bears tussle with bulls for control | Source: SHIBUSD on Tradingview.com
Shiba Inu Sustains Rally
Despite the decline in the burn rate, the Shiba Inu price remains resolved to go the other way. The altcoin’s price crossed the $0.000008 mark and bulls have demonstrated a strong hold on the coin. This has resulted in an 11.75% rise in the last day compared to a 9.38% increase in the last week.
Daily volume for the digital asset is down 14.75% though, so it could mean that this rally is destined to be short-lived. However, if the SHIB price can maintain its hold above the 50-day moving average, then it will provide the momentum needed for the rally to continue.
The recovery is also closely linked to the Bitcoin price recovery, which means a drawdown in Bitcoin could also mean a drawdown in the SHIB price. So the Bitcoin price will be important to keep an eye on to figure out SHIB’s next moves.
Presently, SHIB is trading at $0.00000804. with a market cap of $4.74 billion, it is the 19th-largest cryptocurrency in the space.
