Amid the ongoing market rally, Ethereum-based meme coin Shiba Inu (SHIB) also known as “Dogecoin Killer” has witnessed a notable increase in its token burn rate in the last 24 hours.
Shiba Inu Burn Rate Sees Significant Increase
The Shiba Inu burn rate has seen an increase of over 800% within the past 24 hours. According to data from Shibburn, around 10,370,764 SHIB tokens have been burnt in the past day, indicating an approximately 805.83% increase.
Furthermore, the increase in burn rate was due to a significant transaction that resulted in the burning of over 10 million SHIB tokens. It was revealed that the address 0xa9d1e08c7793af6…7fb81d3e43 sent a total of 10,240,655 tokens to the SHIB burn wallet.
Lately, the Shiba Inu burn rate has been witnessing impressive surges. These spikes in burn rate have since garnered the interest of cryptocurrency investors and the community.
On Monday, the project’s burn rate experienced a whopping 7,686,774% increase, which saw about 8.35 billion SHIB tokens destroyed. This marks the highest burn rate the project has ever seen since it was introduced.
Data from the burn tracker revealed that the wallet address known as “0xc7d0455” made up for over 90% of the tokens burnt. However, the wallet address was later identified as “Shiba-swap.eth” also known as the “Shiba Inu: Deployer 2” address.
Several factors can be seen to have been contributing to the recent spikes in the SHIB burn rate. One of the factors might be the significant increase in activity on the Shibarium network.
The network’s transaction seems to have also increased lately, which might have led to the increase in burn rate. Due to the fact that when the network is being utilized largely, it can lead to more tokens getting burned.
Currently, the network’s daily transactions have reached a whopping 7.51 million. Meanwhile, its total number of transactions has recently crossed over the 50 million mark as of the time of writing.
New Burn Techniques For Shibarium Burns
Earlier this week, Shiba Inu introduced new burning techniques for Shibarium in order to improve the SHIB value. The new mechanism was described as a “transformative” method by the team, which is important for the network’s economic model.
There will be two separate phases for the mechanism known as the Manual phase and the Automated Transition phase. During the manual phase, the official deployer wallet will oversee the token burn.
However, this phase will later transit to an automated system, which will lead to the Automated Transition phase. According to the team, this automated phase will kick start in January 2024.
So far, out of the total number of SHIB tokens supplied initially, over 410.67 trillion have been burned. As of right now, the burn tracker estimates that there are 580.72 trillion SHIB tokens in circulation overall.
Featured image from Shutterstock, chart from Tradingview.com