Shiba Inu (SHIB), a popular dog-themed cryptocurrency, recently saw a significant rise in its burn rate, a process designed to lower the total supply and potentially boost long-term value. However, after a sharp increase, the burn rate has slowed, settling at 1.97% in the past 24 hours.

Shibburn X reports that 15,050,787 SHIB tokens were burned in the last 24 hours, leading to a modest 1.97% rise in the daily burn rate. In contrast, the previous day saw a massive 795.3% increase. Over the past seven days, a total of 94,207,386 SHIB tokens were removed from circulation, reflecting a 59.37% surge. This recent dip suggests a brief pause rather than a long-term decline.

Community Watches for Future Burns

Despite the slowdown, the Shiba Inu community remains alert, anticipating renewed aggressive burn events once market conditions stabilize. Glassnode, a top on-chain analytics firm, reports that the broader crypto market lost momentum after Bitcoin’s failed attempt to push toward price discovery.

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Since February, Bitcoin has dropped 5.9%, while Ethereum (ETH) and Solana (SOL) have declined by 16.9% and 33.1%, respectively. Meme coins, which surged 90.2% in late 2024, suffered the steepest fall, dropping 37.4% alongside a decrease in open interest.

Futures Open Interest Sees Sharp Decline

Glassnode data shows a substantial drop in Futures Open Interest across the meme coin sector. Open Interest, which tracks outstanding futures or options contracts, helps gauge trading activity and liquidity. A recent analysis reveals that Dogecoin (DOGE) Futures Open Interest, based on a seven-day moving average, plummeted 58.45%, falling from $3.58 billion on December 9, 2024, to $1.49 billion.

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SHIB also saw a significant decline in Futures Open Interest, dropping 74.41% from $323 million to $83 million. This shift suggests leveraged positions are being flushed out, while overall sentiment in the meme coin sector appears to be shifting.

At the time of writing, SHIB was down 0.06% in the last 24 hours, trading at $0.00001545. Over the past week, the token dropped 4.73%, bringing its February losses to over 18%. While the market faces ongoing challenges, investors continue to monitor SHIB’s burn strategy and overall performance.