Shiba Inu Burn Rate Drops to 1.97% in Momentary Lull

Dog-themed cryptocurrency Shiba Inu recently experienced a remarkable surge in its burn rate, a strategy aimed at lowering SHIB‘s total supply while potentially increasing long-term value. However, after a period of increase, Shiba Inu’s burn rate has now taken a breather, settling at just 1.97% in the last 24 hours.

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According to the Shibburn X account, 15,050,787 SHIB were burned in the last 24 hours, marking a 1.97% increase in the daily SHIB burn rate. The day before last saw a 795.3% surge in burn rate, while the last seven days saw 94,207,386 SHIB burned, contributing to a 59.37% increase within this time frame.

HOURLY SHIB UPDATE$SHIB Price: $0.00001542 (1hr -0.52% ▼ | 24hr 1.66% ▲ )

Market Cap: $9,085,566,593 (1.66% ▲)

Total Supply: 589,255,488,414,094

TOKENS BURNT

Past 24Hrs: 15,050,787 (1.97% ▲)

Past 7 Days: 94,207,386 (59.37% ▲)

With a substantial amount of SHIB burned in the last seven days, the drop in daily burn rate might be a temporary breather as market momentum stalls.

Considering this, the Shiba Inu community is keeping a close eye on future burn events, waiting to see a return in aggressive SHIB burns.

Market momentum stalls

According to leading on-chain data provider Glassnode, the markets momentum has slowed following an attempt to push Bitcoin to price discovery. Bitcoin has fallen 5.9% since February, while ETH and SOL have declined by 16.9% and 33.1%, respectively.

Meme coins, which climbed 90.2% in late 2024, have experienced the greatest drop, falling 37.4%, coinciding with a decline in open interest.

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According to Glassnode, Futures Open Interest across the meme coin sector has dropped significantly since their peaks. Open Interest is the total number of outstanding futures or options contracts on a market. It indicates the current trading activity and speculative behavior on the market. It may also be used to determine market liquidity.

According to a recent Glassnode analysis, the DOGE Futures Open Interest seven-day moving average fell by 58.45%, from $3.58 billion, on Dec. 9, 2024, to $1.49 billion. Other meme coins performed similarly; SHIB, albeit with lower total OI, also experienced declines. SHIB open interest fell 74.41%, from $323 million to $83 million. This can point to leverage flushing out but also signal a shift in sentiment across the meme coin sector.

At the time of writing, SHIB was down 0.06% in the last 24 hours to $0.00001545 and down 4.73% weekly. SHIB has declined over 18% so far in February.