Shiba Inu’s burn mechanism saw a significant surge over the past 24 hours, eliminating around 100 million SHIB tokens from circulation. This unexpected increase has garnered notable attention from investors, stirring discussions about a potential recovery in SHIB’s price.
Notable Surge in Burn Rate
In the last 24 hours, the Shiba Inu burn program, which had been relatively dormant, experienced a dramatic rise. Based on recent data, the burn rate skyrocketed by 140,000%, resulting in the destruction of over 96 million SHIB tokens. Remarkably, almost 99% of this burn occurred in a single transaction by a wallet linked to Coinbase, a transaction that took place approximately 10 hours ago. The wallet had been inactive for the past five months, with its last transaction being an exchange of 0.2839 ETH 154 days ago on THORChain.
Although the dollar value of the 96 million burned SHIB is not substantial, such burns are considered to make SHIB scarcer and potentially more valuable over time.
Current SHIB Price Status
Shiba Inu is currently trading at about $0.0000141, showing a 2% decline over the past week. This dip mirrors the overall downward trend observed in other meme coins like Dogecoin (DOGE), dogwifhat (WIF), Pepe (PEPE), Bonk Inu (BONK), and Brett (BRETT).
Shiba Inu has implemented a burn program known as the Shibarium “Burn Portal” as part of its Layer-2 scaling solution. This mechanism is tied directly to transactions on the Shibarium network. For each transaction, a portion of the transaction fees paid in Bone ShibaSwap (BONE) is used to buy SHIB tokens, which are then sent to a null address and destroyed. This automated process contrasts with the original community-led, voluntary burns, adding a more systematic approach to reducing Shiba Inu’s supply.
Key Takeaways
The sudden spike in Shiba Inu’s burn mechanism has excited the community, especially during a general downturn in the cryptocurrency market. Here are some valuable inferences:
– The substantial increase in SHIB burn rate could signal a potential price recovery.
– Active involvement of exchanges like Coinbase in burn transactions could enhance credibility.
– Systematic burns via Shibarium may have long-term effects on SHIB’s scarcity and value.
This notable increase in token burns comes at a time when the crypto market is experiencing volatility. While immediate impacts on SHIB’s price are uncertain, long-term benefits are anticipated, keeping the community optimistic.