Recent data indicates a sharp contraction in transaction activity within the Shibarium network, created to support the Shiba Inu (SHIB) token. The decline in activity correlates with a decrease in token burning.
Decline in Transaction Activity
This week, Shibarium saw a significant drop in transactions from 4 million on August 23 to roughly 10,000 by August 29. By August 30, activity slightly increased to ~30,000 transactions. This decline exceeds 99%, interrupting an August pattern of maintaining around 4 million transactions daily.
Decrease in Token Burning
Through the token burning mechanism, which aims to reduce total supply, the Shiba Inu burn rate dropped by 80.32% over the last 24 hours, amounting to 220,504 SHIB. As burning typically supports price by reducing supply, a lower burn rate may weaken price support.
Current Market Situation for SHIB
Currently, SHIB is trading around $0.00001234, showing little change for the day but down 7.7% for the week. The token has a market capitalization of $7.27 billion and a 24-hour trading volume of $117.2 million. The circulating supply stands at 589.2 trillion tokens out of a total supply of 589.5 trillion. Notably, SHIB remains 85.6% below its all-time high.
The decrease in activity on Shibarium and reduction in token burning presents certain risks for traders, and ongoing monitoring of market dynamics is warranted.
