Even though Shiba Inu ended last year with extremely low network activity, like any other network activity, there’s no reason to worry, the meme currency’s burn rate has dropped to an extreme level of 25 million SHIB per day. Fortunately, we are seeing a recovery trend.
According to Shibburn, in the last 24 hours, more than 90 million Shiba Inu tokens have been burned by various addresses, which is an increase of 35%. With the recovery of the crypto-currency market activity, we should see a gradual increase in the number of destroyed tokens.
Thirteen hours ago, an anonymous address burned 76 million SHIB tokens, making it the largest amount burned of meme assets in the past 24 hours. Unfortunately, for the burn to have a noticeable effect on the market, Shiba Inu investors would have to burn about a billion chips.
The lack of burn volume is due to the almost non-existent use of the Shiba Inu network. Merchants who accept SHIB tend to burn significant amounts when they manage to get decent exchange volume, which does not happen often, given the declining popularity of meme currency and crypto payments in general.
However, the lack of market traction we are seeing today is temporary, and Shiba Inu’s burn volume may recover, with the general return of inflows into the industry and the popularization of crypto-currencies as payment methods.
For example, Shiba Inu’s trading volume remained at about $32 billion while the token was trading at ATH. Throughout 2022, it dropped to only $5 billion, which explains the drastic drop in trading volume. The correlation between the two metrics is obvious.