Shiba Inu’s burn rate plummets by 80%, here’s who can save him

The burn rate of one of the biggest meme tokens on the market has dropped massively. Such a drastic decrease in the burned supply of Shiba Inu should be considered a negative factor, especially during a hemorrhaging cryptocurrency market. But there is a solution.

Shiba Inu’s burn mechanism does not work the same way as Ethereum’s. Instead of automatically burning a portion of the transaction fees on the network, SHIB has three specific addresses to which users voluntarily send funds and remove tokens from circulation.

SHIB Graph
Source : TradingView

Technically, no burn mechanism exists on the network, funds are simply sent to wallets that no one will ever be able to access. However, this is enough to slow down asset inflation. High spikes in burn volume are fueled by individuals or companies who commit to burning a certain amount of tokens. The lack of burn volume shows that companies are experiencing a decline in Shiba Inu revenue or have no tokens to burn.

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How can the situation change?

The only way to provide more volume to burn is to feed revenue to businesses that have committed to using the portion of Shiba Inu tokens they got from selling goods or services. Some users may want to use SHIB as payment, which should help the network accumulate more burnable volume.

Unfortunately, small batches of tokens to burn don’t provide as much value as needed to affect SHIB’s price. Since October, Shiba Inu has lost over 40% of its value, making the last two months one of the worst periods for the token.

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Fortunately, the resumption of the burn could bring investor attention back to the prominent token meme.

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