Can Shiba Inu’s surging burn rate catch the eye of investors?

• Negative sentiment around Shiba Inu was high, and market indicators looked bearish.
• Nonetheless, Shibarium’s adoption was on the rise as its metrics increased. 

Shiba Inu [SHIB] witnessed a massive spike in its burn rate in the last 24 hours, reflecting its deflationary characteristics. However, despite the meme coin burning a substantial number of tokens, its price action continued to remain bearish during the same period.

Shiba Inu is burning fast!

SHIBBURN, a popular Twitter handle that posts updates related to the blockchain’s burn rate, recently posted a tweet revealing that Shiba Inu burned a total of 83,307,739 SHIB tokens in the last 24 hours over four transactions.

This massive burn pushed the meme coin’s 24-hour burn rate by more than 900%, which looked impressive. To date, more than 490 trillion SHIB tokens have been burned. 

Generally, when tokens are burned, the circulating supply of assets drops, creating more demand. This in turn causes a hike in that asset’s price. However, this was not the case with SHIB this time, as its daily chart was red.

According to CoinMarketCap, SHIB was down by more than 2% in the last 24 hours. At the time of writing, it was trading at $0.000008195 with a market capitalization of over $4.8 billion.

AMBCrypto then checked SHIB’s metrics to better understand what was not working in the meme coin’s favor.

As per our analysis, SHIB’s MVRV ratio dropped over the last week. Its 1-week price volatility also plummeted. Interestingly, while its price registered its latest drop, negative sentiment around the token increased substantially.

However, the meme coin continued to remain whales’ favorite. According to WhaleStats, SHIB was the most traded token among the top 100 ETH whales in the last 24 hours.

Source: Santiment

SHIB’s MACD remained in the bears’ favor. Its Money Flow Index (MFI) also registered a slight downtick. Additionally, its Relative Strength Index (RSI) was resting near the neutral mark, increasing the chances of a continued downtrend in the coming days.

Source: TradingView

Read Shiba Inu’s [SHIB] Price Prediction 2023-24

This is how Shibarium is doing

While SHIB’s price continued to dwindle, the situation was different with Shibarium. This was evident from the latest data, which revealed that the total number of Shibarium wallets reached 1.2 million.

The L2 has processed over 4.2 million transactions and 1.8 million blocks to date. However, it was interesting to note that after spiking on 23rd November, Shibarium’s daily transaction graph went down.

Source: Shibariumscan.io