The Shiba Inu burning initiative continues this week but with a significant reduction in size. The latest figure showing declining investor participation could have significant long-term implications for SHIB’s price.

SHIB burn rate decreases by 7,700%

Over the past 24 hours, Shibburn has shown that SHIB’s burn rate has been less than encouraging. The burn tracker revealed a total of 106.72 million tokens were burned during the 23-hour period, which represents a significant decrease of almost 60% from the previous day’s numbers.

Now, the interesting thing is not only the fact that the Shiba Inu’s burning rate has decreased, but how much it has decreased. As the weekend began, the burn tracker indicated a spike of over 7,700% in the burn rate, making the current slowdown alarming.

Source: Shibburn

There have only been five transactions that burned SHIB in the last 24-hour period, with one wallet “0x75d9” doing most of the work in this time. The wallet address alone contains 100 million tokens, which represents about 98% of the total burn number. At the time of writing, there has not been a single Shiba Inu burn transaction over the past eight hours amid the slowdown.

However, there was a spike on the weekly chart indicating that the current slowdown may be limited to a 24-hour period only. Shipburn shows an increase of 151.4% over the past seven days, bringing the total number of burns to more than 620 million.

SHIB bears tussle with bulls for control | Source: SHIBUSD on Tradingview.com

Shiba Inu keeps grouping

Despite the declining burn rate, the price of the Shiba Inu remains determined to go in the other direction. The altcoin price crossed the $0.000008 mark and the bulls showed strong control over the coin. This resulted in an increase of 11.75% in the last day compared to an increase of 9.38% last week.

The digital asset’s daily volume fell by 14.75%, so this could mean that this rally will be short-lived. However, if SHIB price can maintain its stability above the 50-day moving average, it will provide the necessary momentum to continue rising.

The recovery is also closely linked to the recovery in Bitcoin prices, which means that a drawdown in Bitcoin could also mean a decline in the price of SHIB. So it will be important to monitor the Bitcoin price to see what SHIB’s next moves are.

Currently, SHIB is trading at $0.00000804. With a market capitalization of $4.74 billion, it is the 19th largest cryptocurrency in the industry.