Shiba Inu (SHIB), the second largest memecoin that is currently on the radar of investors, continues to increase its burning rate despite moving away from its parabolic rise over the past few days. Despite ongoing price consolidation, the network still maintains a very strong burning rate.
Another Major Increase in SHIB’s Burning Rate
Data from the Shibburn platform, which tracks SHIB burns, shows that the burning rate of Shiba Inu has increased by 323% in the past 24 hours, with a total of 68.11 million tokens being sent to inaccessible wallets.
This significant burning figure highlights the network’s commitment to continuously reducing the circulating supply, which is currently fixed at 579.89 trillion SHIB. With the current burning rate, the total amount of SHIB sent to inaccessible wallet addresses has reached 410.64 trillion SHIB.
The high burning rate recorded earlier this week was accompanied by a price surge. After experiencing a 1.54% drop overnight, the memecoin’s price managed to significantly deviate from the downward trend, settling at $0.000007854. While the burning rate of the network is promising, it alone is not sufficient to prevent SHIB from reducing its gains of over 13% in the past week.
Key Trends to Watch for SHIB’s Rise
As transactions on Shiba Inu and its ecosystem tokens increase, it becomes inevitable for the burning rate to further rise. Although the short-term impact on the burning rate may not be as efficient as expected, this specific metric is crucial for the future of the network.
For Shiba Inu to reach the eagerly awaited threshold of $0.01, the burning rate needs to continue increasing and there must be a constant increase in demand. This is where the Layer-2 network Shibarium comes into play.
With its efforts to incorporate more decentralized applications (dApps), Shibarium is expected to play a significant role in reducing SHIB’s supply over time. This prediction is based on the fact that a portion of the generated transaction fees will be sent to inaccessible wallets and burned.
