Shiba Inu’s SHIB burn rate witnessed a noteworthy surge of nearly 6,000% during the past week, marked by the incineration of approximately 9.4 billion tokens.
This heightened burning activity occurs amid a discernible reduction in transaction volume on Shibarium, the layer 2 network of the meme coin.
SHIB Burn Rate Spikes 6,000%
Over the past week, Shiba Inu has witnessed an impressive 5,972.36% uptick in its burn rate, removing over 9.4 billion tokens from circulation. The burn rate represents over 10% of the total number of SHIB tokens destroyed last year.
Token burns typically aim to reduce the circulating supply of a coin. A decrease in supply can theoretically lead to scarcity, potentially driving up prices if demand remains high.
SHIB Token Burn During 24 Hours. Source: ShibBurn
The notable surge in SHIB’s market value this week can be attributed to its elevated burn rate. This increase coincided with a resurgence across the broader market, spurred by the approval of several spot Bitcoin ETFs in the US.
These events resulted in SHIB’s price rising by around 5% during the past week to a high of $0.0000105.
Shibarium Transactions Decline
Concurrently, the Shibarium network has endured a noticeable decline in daily transactions over the past month. Daily transactions have dwindled from an average of 7 million in December 2023 to less than 2 million this month.
Indeed, daily transactions dropped from 7.84 million on December 28, 2023, to 1.16 million as of January 13, 2024.
Shibarium Transactions Decline. Source: Shibariumscan
Still, other network metrics reflect the substantial growth and adoption Shibarium has enjoyed since its launch. The layer 2 blockchain now boasts 1.3 million wallets and has generated 2.64 million blocks. Additionally, the total value of assets (TVL) locked on Shibarium peaked at around $1 million earlier this month.
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