Why Did The Shiba Inu Burn Rate Spike 5,569% In One Day?

The Shiba Inu burn rate has seen a notable 5,569% spike in the last 24 hours, continuing the positive trend that had begun in the last week. However, this spike in the burn rate comes at a time when the crypto market is struggling, and the price of SHIB has dropped significantly. This has raised questions as to what could be driving the burn rate.

Shiba Inu Sees 5,549% Surge In The Burn Rate

The spike in the Shiba Inu burn rate has come at an opportune time and has revamped the positive sentiment among investors. According to data from the Shiba Inu burn tracking website Shibburn, the total number of SHIB tokens burned in the last 24 hours came out to almost 12 million. This translated to a 5,549% spike compared to the prior day’s figures.

Interestingly, this spike is far from the largest that the meme coin has seen in its burn rate this week. Looking at the Monday data from the burn tracker, there was a major 202,974% spike recorded in one day as investors moved over 12 million tokens to the burn address during the 24-hour timeframe,

As for the transactions that have carried out the burns, there have been only six transactions recorded in the last day at the time of this writing. The major burns came from a single wallet identified as “0x60812..39fe80”. This website, carried out more than 90% of the total burns after sending around 10.1 million coins in two separate transactions to the burn wallet.

The spikes in the 24-hour burn rate this week have contributed to a significant spike in the weekly burn rate as well. Shibburn’s data shows that over the 7-day period, a little over 402.7 million tokens have been incinerated. This translates to a 1,098.7% increase in the burn rate in one week.

SHIB Burns Spike Despite Drop In Price

Usually, spikes in Shiba Inu burn rates have come at times of positive sentiment when investors are more willing to send coins to the burn address in an effort to keep pushing the price upward. However, this time around, the spikes in the burn rate have come at a time when the token’s price has been dropping.

As data from CoinMarketCap shows, the Shiba Inu price is down 9.18% in the last day alone. This is in stark contrast to the 5,549% increase in the burn rate. Likewise, on the weekly chart, the meme coin’s price has crashed approximately 18%, while the burn rate has jumped 1,098%.

During this time, though, the SHIB daily trading volume has jumped 128% to $594 million. However, with prices falling, it suggests that this volume is coming from sellers rather than buyers.

Featured image created with Dall.E, chart from Tradingview.com