The Shiba Inu (SHIB) burn rate has dropped again with the number of tokens burned in the past 24 hours, painting a bearish picture for the meme coin. Shiba Inu’s burn rate has been fluctuating continuously since the beginning of the year, with a lack of a catalyst to make a significant number of tokens burned daily.

Shiba Inu’s metabolism decreases by 100%

Facts of the Shibburn fire tracking website shows that the burn rate of Shiba Inu has decreased by over 100%, with zero tokens burned in the last 24 hours. Interestingly, no SHIB token has been burned in the last three days, with the last token burning on August 13, when 802,246 Shiba Inu tokens were burned.

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Further data shows that the weekly burn rate of Shiba Inu has dropped by over 62%, with approximately 42.9 million SHIB burned in the past seven days. This drop in Shiba Inu burn rate comes amid Shibarium’s recent transition to an automated burning mechanism. 70% of the basic transaction fees earned on the layer-2 network are automatically converted to SHIB and burned.

This transition to an automated burning mechanism was expected to have a positive impact on Shiba Inu’s burn rate and potentially increase the number of tokens burned daily, but this has not been the case so far. One plausible explanation is that the transaction fees earned on the Shibarium network have not been sufficient to implement automated daily token burns.

Shibarium Network Activity has decreased in recent months. Facts Shibarium scan shows that daily transactions on the layer-2 network have stagnated over the past month, hovering between 3,000 and 8,000. The highest daily transaction recorded during this period occurred on August 1, with 8,630 transactions processed that day.

As a result, transaction fees on the network are far below what the layer-2 network used to record, especially when it averaged around 5 million daily transactions in December 2023. For example, Shibarium earned 6.8 BONE ($2) in transaction fees on August 15. It is therefore understandable that the team will be reluctant to implement automated daily burns.

On-Chain Metrics Also Paint a Bearish Picture

Shiba Inu’s on-chain metrics also paint a bearish picture for the meme coin, with declines across the board. Data from market intelligence platform IntoTheBlock shows that the meme coin’s large transactions have dropped by over 14%, indicating a lack of interest among SHIB whales.

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The percentage of Shiba Inu owners Currently in the money has also dropped to 45%, with most holders currently incurring losses. Meanwhile, net network growth is still slowing down as there is a lack of new investors in the Shiba Inu ecosystem.

At the time of writing, Shiba Inu is trading at around $0.00001338, down almost 2% in the past 24 hours, according to facts from CoinMarketCap.

Main image created with Dall.E, chart from Tradingview.com