The Shiba Inu burn tracking platform, Shibburn, has recently disclosed the impressive number of SHIB tokens that were incinerated in September. This marked a significant increase compared to the previous month’s burn figures, showcasing a positive trend for the Shiba Inu community.
Remarkable Increase in Shiba Inu Burn Rate for September
The latest update from Shibburn via an X post indicates that nearly 2.4 billion Shiba Inu tokens, equivalent to $42,069, were burned in September across 131 transactions. This represents a staggering 249% increase in the monthly burn rate compared to August, where 680 million SHIB tokens were burned. This development is encouraging for the Shiba Inu ecosystem, as token burns can potentially influence SHIB’s price positively in the long run.
September’s burn rate spike can be attributed to the remarkable performance of the meme coin during the month, which bolstered investor confidence and led to increased accumulation of the token. As Shiba Inu whales accumulated more SHIB, additional tokens were burned due to transaction fees allocated for buybacks and burns. Notably, the ecosystem achieved this milestone despite Shibarium’s daily transactions remaining stable throughout September.
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Looking Forward: Will October Surpass September’s Burn Rate?
The critical question remains whether October will exceed the burn rate achieved in September. So far, the burn rate in October has not started on a high note. Data from Shibburn highlights a significant drop of over 93% in the burn rate over the past seven days. Additionally, in the last 24 hours, only 572,837 SHIB tokens were burned, marking a 78% decline.
This reduction in SHIB’s burn rate is likely linked to the prevailing bearish sentiment within the broader crypto market. The anticipated ‘Uptober’ rally has not met expectations, leading investors to exercise caution in accumulating more tokens, including SHIB. However, a market-wide price recovery could potentially stimulate an increase in Shiba Inu’s transactions and subsequently, the burn rate.
Analyzing On-Chain Metrics: A Bearish Outlook
Current on-chain metrics paint a somewhat bearish picture for Shiba Inu. According to data from market intelligence firm IntoTheBlock, there has been a noticeable decrease in the number of Shiba Inu holders who are in profit. This is significant as any substantial price drop could trigger a sell-off frenzy, adding further downward pressure on the token.
Furthermore, the concentration metric reveals a bearish trend, with Shiba Inu whales seemingly reducing their holdings instead of accumulating more tokens. Additionally, SHIB’s net network growth remains stagnant, as the number of new daily addresses has not shown any significant change.
Amidst these challenging metrics, there is a noteworthy achievement for Shibarium: the network’s total value locked (TVL) has surpassed the $7 million mark. This milestone offers a glimmer of hope and potential for future growth within the Shiba Inu ecosystem.
At the time of writing, Shiba Inu is trading at approximately $0.000016, marking an increase of over 1% within the last 24 hours, as per CoinMarketCap data.
