What Caused Shiba Inu’s SHIB Burn Rate to Soar by 6,000%?
Shiba Inu, a notable token on the Ethereum blockchain, has made a significant impact on the global market by experiencing an impressive 6000% surge in its burn rate. This notable increase in burn rate, as reported by on-chain data from Shibburn, a platform dedicated to providing insights into SHIB burning, has garnered widespread attention from crypto enthusiasts worldwide.
Despite the substantial surge in burn rate, Shiba Inu’s market value exhibited a contrary trend, trading in negative territory on the day. This unexpected dynamic has added an element of intrigue to the ongoing narrative surrounding the token. Nevertheless, Shiba Inu’s price managed a marginal increase over the past week, further intensifying the curiosity and speculation surrounding this digital asset.
SHIB Burn Rate Spikes 6,000%
In the past week, Shiba Inu saw a huge increase of 5,972.36% in its burn rate, removing more than 9.4 billion tokens from circulation. This burn rate is over 10% of the total SHIB tokens destroyed last year. Token burns aim to reduce the number of coins available, theoretically creating scarcity and potentially increasing prices if demand remains high.
The notable rise in SHIB’s market value this week is linked to its increased burn rate. This coincided with a broader market upswing, driven by the approval of several spot Bitcoin ETFs in the US. As a result, SHIB’s price increased by about 5% in the past week, reaching a high of $0.0000105.
Shibburn’s data shows a remarkable 5891.2% surge in Shiba Inu’s burn rate over the last 7 days. On the latest day, 820,007 SHIB were burned in the past 24 hours. However, this led to a drop in today’s burn rate, marking a 95.05% decrease.
Since its inception, Shiba Inu has burned a significant 410.70 trillion SHIB, significantly impacting the circulating supply. Currently, the circulating supply of the meme coin is 581.07 million, according to the latest data.
Shibarium Transactions Decline
The Shibarium network has recently seen a notable decrease in daily transactions over the past month. In December 2023, daily transactions averaged around 7 million but have now dropped to less than 2 million in January 2024. For example, on December 28, 2023, there were 7.84 million daily transactions, which have since decreased to 1.16 million as of January 13, 2024.
Despite this decline in daily transactions, other metrics indicate significant growth and adoption for Shibarium since its launch. The layer 2 blockchain currently hosts 1.3 million wallets and has generated 2.64 million blocks. Moreover, the total value of assets (TVL) locked on Shibarium reached a peak of around $1 million earlier this month, showcasing the network’s overall expansion and success.
Shiba Inu’s recent surge in burn rate, coupled with the decline in daily transactions on the Shibarium network, paints a dynamic picture of the cryptocurrency’s ecosystem. The substantial increase in burn rate, removing a significant number of tokens from circulation, has influenced SHIB’s market value. This phenomenon aligns with broader market trends, particularly driven by the approval of spot Bitcoin ETFs in the US. On the other hand, while Shibarium has experienced a noticeable decrease in daily transactions, key metrics such as the number of wallets, generated blocks, and the total value of locked assets indicate a robust growth and adoption trajectory since its inception. The crypto landscape continues to evolve, presenting a blend of challenges and opportunities for these innovative blockchain networks.