Shiba Inu’s burn mechanism experienced a surge in the last 24 hours, removing approximately 100 million SHIB tokens from circulation. The significant increase caught investors‘ attention, raising the possibility of a recovery in SHIB’s price.
Notable Increase in Burn Rate
The Shiba Inu burn program, which had been low for the past few days, saw a massive increase in the last 24 hours. According to data, the burn rate increased by 140,000%, leading to the destruction of over 96 million SHIB tokens. Interestingly, about 99% of the burn occurred in a single transaction. The transaction, conducted approximately 10 hours ago, was carried out by a wallet associated with the Coinbase exchange.
The wallet had been inactive for the last 5 months, with its last transaction being an exchange of 0.2839 ETH 154 days ago. The transaction was executed on THORChain. Although the dollar equivalent of the 96 million burned SHIB is low, such burns are believed to make SHIB rarer and potentially more valuable in the long run.
Current Status of SHIB Price
Shiba Inu is currently trading at approximately $0.0000141, experiencing a 2% weekly decline. The weak performance parallels the general decline of other meme coins like Dogecoin (DOGE), dogwifhat (WIF), Pepe (PEPE), Bonk Inu (BONK), and Brett (BRETT).
Shiba Inu has adopted a burn program called the Shibarium “Burn Portal” as part of its Layer-2 scaling solution. This new burn mechanism is directly linked to transactions on the Shibarium network. For each transaction on the network, a portion of the transaction fees is paid in Bone ShibaSwap (BONE) and used to purchase SHIB tokens. These purchased tokens are then sent to a null address and destroyed.
Shibarium’s burn mechanism differs from the original Shiba Inu burn mechanism, which was community-led and based on voluntary burns. This automated burn process in Shibarium plays a more systematic role in reducing Shiba Inu’s supply. The sudden increase in Shiba Inu’s burn mechanism has excited the community, occurring during a general downtrend in the cryptocurrency market. However, there remains an expectation that such burns could positively impact SHIB’s price in the long term.
