Shiba Inu Burn Rate Down to 0%, What's Happening?

On July 1, Shiba Inu printed an unusual burn case as the latest data from the Shibburn platform that tracks $SHIB burn transactions shows that the $SHIB burn rate has fallen to zero over the last day.

The $SHIB burn activity stands as the project’s deflationary mechanism that is targeted at reducing the supply of $SHIB tokens from circulation, thereby fueling a potential surge in the token’s market value.

Per the data, $SHIB burn rate is at 0% during the latter hours of Tuesday. While the metric coincides with a notable fall of 3.56% in the token’s price, it has fueled concerns among investors about the token's momentum and its near-term deflationary prospects.

Millions of $SHIB gone

The flat trend in $SHIB’s burn rate has sparked curiosity across the crypto ecosystem as the data shows that a substantial amount of meme coins were transferred to unspendable wallets during the same period.

The $SHIB on-chain metric over the last day projects a surprising dynamic as the burn activities executed during the period saw a massive 23,767,887 $SHIB meme coins sent out of circulation. Yet, the burn rate shown by the data source sits at the zero level, stirring debates among market participants.

However, it is important to note that the zero burn rate is in a positive zone as it was marked in green rather than red. While this is not the first time Shiba Inu has experienced a zero reading of its burn rate, the data source has either showcased them as green or red, indicating whether the rate is positive or negative.

Sometimes, flat burn rates projected by the data source might not necessarily be due to stagnated movement in the token’s burn activity. Oftentimes, they have been traced to cases of a system glitch that hits the website from time to time.

Nonetheless, further data provided by the sources show that the total $SHIB destroyed over the last 24 hours happened in seven separate burn transactions. The two largest transactions carried 100,000 $SHIB and 5,654,684 $SHIB, respectively.

However, the earlier burn transactions for the day saw the $SHIB tokens sent to unspendable wallets in minimal bits. The first two burn transactions executed over the last day carried only 5 $SHIB tokens each.