Shiba Inu (SHIB) destruction rate drops, will purchasing demand increase?

The start of a new week has seen a significant drop in the Shiba Inu (SHIB) burn rate. The decline in Shiba Inu token burns continues to be an issue for the meme token ecosystem, and a number of factors have contributed to the drop.

The destruction rate dropped by 97%

According to data from the burn tracking site Shibburn, the Shiba Inu burn rate has dropped by more than 97% in the past 24 hours, with only 128,791 SHIB tokens being destroyed. These burns occurred in just two transactions, one that destroyed 100,000 Shiba Inu tokens and another that destroyed 28,791. This is in stark contrast to the more than 4.5 million SHIB tokens that were destroyed the day before. However, in the bigger picture, the Shiba Inu burn rate has been declining for some time. Data from Shibburn shows that the meme token's burn rate has dropped by nearly 40% in the past seven days.

At the same time, 👀 In May, the destruction rate of SHIB decreased by 78.23% year-on-year, and the destruction volume exceeded 369 million pieces that month, but it was still lower than that in April.

The decline can be attributed in part to the second-layer network Shibarium, which has seen a significant drop in daily transactions. Shibarium has contributed to SHIB token burns in the past, but has recently failed to perform burns, likely because the transaction fees collected from daily transactions are not sufficient to burn tokens.

The meaning of destruction

The destruction of these Shiba Inu tokens has a significant impact on the price of memecoin, especially with the increase in demand for SHIB. With a bull run on the horizon, token destruction becomes crucial. Considering that memecoin is one of the hot topics right now, the demand for Shiba Inu is expected to increase significantly. Therefore, the massive destruction of these SHIB tokens could help memecoin prices soar to new highs.

At the same time, since the circulating supply of SHIB is still over 589 trillion, these destructions are necessary for the meme coin to reach certain heights. According to the destruction tracker, for SHIB to reach $0.01, its maximum circulating supply must be limited to 134 trillion.

At the time of writing, the Shiba Inu is trading at around $0.00002472, down more than 1% over the past 24 hours, according to CoinMarketCap.