Shiba Inu’s burn rate spikes to over 1000%; will SHIB switch sides?

• Over 1 billion SHIB has been burned in the last 24 hours.
• SHIB has been on a downtrend, and its bearish trend has continued.

Shiba Inu recently experienced an unusually high burn rate, which hadn’t been observed for some time. This burn rate coincided with ongoing discussions and excitement about the Shibarium, driven by recent developments.

The question arises: Did SHIB’s trade volume suddenly increase, or was the burn rate an independent occurrence?

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Shiba Inu’s burn rate soars

Based on the latest information from Shiburn, the burn rate of Shiba Inu has noticeably escalated beyond its recent patterns. The data indicates that over 1 billion tokens were burned within the last 24 hours alone.

Furthermore, the chart illustrated a staggering surge of over 1,000% in the burn rate during this same 24-hour period. Also, this recent increase in burn rate has contributed to a cumulative burn of over 2 billion tokens in the past week. This was a substantial and noteworthy development.

SHIB volume remains the same

Examining the trading volume using data from Santiment revealed that, despite the heightened burn rate, there was either minimal or no notable change in the trading volume. The most substantial trading volume Shiba Inu experienced was back in July, with a peak of over 23 billion.

However, trading activities have remained subdued since then, hovering around 108 million. This suggested that a corresponding increase in SHIB trading did not instigate the recent surge in burn rate.

Source: Santiment

Shiba Inu Shibarium’s relaunch date is yet to be known

As of 19 August, Shytoshi Kusama, the lead developer of Shiba Inu, communicated to the Shiba community that efforts were actively continuing on the Shibarium project. Additionally, this update followed the initial launch, which encountered difficulties leading to a delay in block production for several hours. 

Subsequently, on 22 August, another blog post from the lead developer reported the successful optimization of Shibarium. The blog post highlighted other advancements and noted that testing was ongoing for the L2 platform.

While no specific relaunch date has been provided, the absence of such information doesn’t appear to have dampened the enthusiasm within the community.

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SHIB remains bearish

Over the recent days, Shiba Inu [SHIB] experienced a notable downward trajectory, clearly illustrated by its daily timeframe chart. Starting from 13 August, the chart has depicted a consistent decline, punctuated by occasional pauses.

As of this writing, SHIB was trading with a marginal gain, albeit under 1%, which appeared more as a slight rebound from the substantial losses it had encountered. Furthermore, the Relative Strength Index (RSI) for SHIB stood at 40, underscoring an ongoing bearish trend.

Source: TradingView