The burn rate of the biggest memecoin on the market is on a massive decline after the cryptocurrency market entered the deepest bloodbath since May. However, chances of a recovery are particularly high, and investors should not worry that much.
Shiba Inu burning mechanism
The burning mechanism Shiba Inu is using is dissimilar to what investors got used to with Ethereum or alternative assets that control the circulating supply similarly. Merchants, traders and services that accept SHIB as payment send a portion of their income to dedicated addresses that no one has access to. By doing so, the received funds are technically burned and will never return to circulation.
The burning volume heavily depends on the activity of the cryptocurrency market in general, which is why the crisis the market is going through right now affects the burning pace so heavily.
Current state of Shiba Inu burn
In the last 24 hours, the SHIB burn rate plunged by 92%, dropping below the 1 million SHIB threshold. Such a low value is not critical for the network but will certainly negatively affect the sentiment of Shiba Inu investors.
Only a week ago, the network saw an enormous 5,800% burn rate increase after Shiba Inu set some milestones in its development. However, the market performance we are seeing today will push investors away from it.
At press time, Shiba Inu barely held above the $0.00001 threshold and lost around 17% of its value in the last 48 hours. Unfortunately, even a spike in the burn rate would not help the meme cryptocurrency regain its pre-dump traction. The prolonged downtrend for the memetoken continues.