New data from Shibburn – a dedicated Shiba Inu burn tracking project, shows that the Shiba Inu burn rate has increased by over 1000%. The surging burn rate has led to an exponential number of SHIB tokens burned in the last 24 hours.
According to the data, about 1,043,370,687 (1 billion) SHIB has been removed from circulation over the last day. The surge has created widespread speculation among crypto enthusiasts as the Shiba Inu community strives to drastically reduce the amount of SHIB tokens in circulation.
The burn was carried out across 38 transactions with the most significant burning about 418,719,732 (418 million) Shiba Inu tokens at approximately 15 hours from press time. Also, another single transaction destroyed 331,507,457 (331 million) SHIB tokens about 16 hours ago from the time of writing.
Source: Shibburn
Related Reading: Over 700M Shiba Inu Burned in Preparation For Shibarium Launch
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Possible reasons for the burn rate spike
The surge in the Shiba Inu burn rate can be attributed to several factors including the community’s primary objective to reduce the number of SHIB tokens in circulation. This will in turn create scarcity of the memecoin and consequently increase the value of the training supply.
Also, another reason could be due to the unsuccessful Shibarium launch that saw transactions getting stuck after the mainnet went live. The team didn’t live up to the growing expectation of everyone, thereby raising fear, uncertainty, and doubt (FUD).
This rocky start might have moved the community to up their burning power to rebuild confidence around the project. It is worth noting that while the burning mechanism can reduce the number of tokens in circulation and create scarcity, it does not always guarantee a positive effect on the price. Ultimately, the burn rate and the potential effect on Shiba Inu price should be viewed alongside other market dynamics.
Shiba Inu (SHIB) price today
According to live data from CoinMarketCap, SHIB is currently selling at $0.0000079. The price is down 1.87% in the last 24 hours. What’s more, Shiba Inu is ranked #15 on the global crypto market chart with a live market cap of $4,710,869,958 ($4 billion). Finally, Shiba Inu still has a circulating supply of 589,346,914,631,298 (589 trillion).
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Victor Swaezy
Victor Nnamdi Igbor "Swaezy" is a crypto enthusiast and writer with over 8 experience in blogging. He is an easy person and when not working, loves to have a good time.