Although Shiba Inu ended last year with extremely low network activity, like any other network activity there is no need to worry, the meme currency burn rate has dropped to an extreme level of 25 million SHIB per day. Fortunately, we are seeing an upward trend.
According to Shibburn, over 90 million Shiba Inu tokens have been burned by various addresses in the past 24 hours, which is a 35% increase. With the recovery of activity in the cryptocurrency market, we should see a gradual increase in the number of destroyed tokens.
13 hours ago, an anonymous address burned 76 million SHIB tokens, making it the largest burned amount of meme assets in the last 24 hours. Unfortunately, for the burn operation to have a noticeable effect on the market, Shiba Inu investors would have to burn around a billion tokens.
The lack of combustion volume is explained by the almost non-existent use of the Shiba Inu network. Traders who accept SHIB tend to burn large amounts when they manage to get a decent trading volume, which doesn’t happen often given the declining popularity of meme currency and crypto payments in general.
However, the lack of market traction we see today is temporary and Shiba Inu burn volume may recover, with the general return of inflows into the industry and the popularization of cryptocurrencies as payment methods.
For example, Shiba Inu’s trading volume remained around $32 billion while the token was traded on ATH. Through 2022, it has dropped to just $5 billion, which explains the drastic drop in trade volume. The connection between the two measurements is obvious.