SHIB Burn Rate Drops as Shibarium Activity Hits New Highs

• SHIB burn rate drops to 62M in a week, indicating a shift in investor sentiment.
• SHIB’s price rises 4.25%, despite a slower burn rate and broader market uncertainty.
• Shibarium’s TVL hits $3M, reflecting growing DeFi adoption and network utility.

The Shiba Inu (SHIB) token is experiencing a sharp decline in its burn rate, raising concerns among investors. Shibburn, a platform that tracks SHIB burns, shows that only 62 million of the memecoin token’s supply has been burned in the past week. The cause of this slowdown is still ambiguous, but several reasons could be involved, ranging from market skepticism to shifting investor sentiment.

SHIB Burn Activity Drops Amid Market Skepticism

SHIB’s token burning activity has been one of the major players in the token’s long-term growth template. Through the circulation of supply, burns have been developed to increase scarcity and, potentially, raise the token’s value. 

However, the recent decline in SHIB’s burn rate may indicate weakening interest from investors in supporting deflationary measures. Instead, many appear to be accumulating tokens in anticipation of a price rally. This change in behavior could be influenced by broader market uncertainty, with investors opting to hold rather than burn.

Although the number of burns is smaller, SHIB has increased in price by 4.25% over the past 24 hours at press time, trading at $0.00001344. This shows resilience from the broader market, as SHIB’s price movements remained the same even during a lower burn rate. Nevertheless, the token’s trading volume increased over 20% in the last 24 hours after declining in the previous week, showing renewed interest.

Shiba Inu Network Sees Increased Activity on Shibarium

Despite the decline in SHIB’s burn activity, there are encouraging signs within the Shiba Inu ecosystem. The total value locked (TVL) in Shibarium, Shiba Inu’s layer-2 network, has climbed to $3 million for the first time since late March. 

This recovery is based on the utility of Shiba Inu’s blockchain, which is progressing from the status of a meme coin into a project of actual value. Expanded TVL is propelled by decentralized applications (dApps) in the network, such as ShibaSwap, WoofSwap, and others, that have grown significantly over the past month.

Moreover, Shibarium’s overall transaction volume and address count keep increasing. Their transaction growth has been over 1.13 billion, and the total number of addresses is more than 206 million. 

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This increasing activity in Shibarium signals that SHIB’s use case goes beyond speculative trading. The token is slowly becoming one of the leading players in the decentralized finance (DeFi) ecosystem, bringing a stable flow of users and applications to its network.