Shiba Inu’s SHIB Token Burn Rate Surges by 6,000% as Shibarium Transactions Decline
Crypto News – Shiba Inu‘s SHIB cryptocurrency has experienced an astonishing 6,000% surge in its token burn rate over the past week, resulting in the incineration of approximately 9.4 billion tokens.
This substantial increase in token burning coincides with a noticeable decline in transaction volume on Shibarium, which serves as the layer 2 network for the popular meme coin.
SHIB Burn Rate Sees Remarkable 6,000% Increase
In the last week alone, Shiba Inu has witnessed an extraordinary 5,972.36% surge in its token burn rate, effectively removing more than 9.4 billion SHIB tokens from circulation. This impressive burn rate accounts for over 10% of the total SHIB tokens that were destroyed throughout the entire previous year.
Token burns are typically implemented to reduce the available supply of a cryptocurrency. This decrease in supply can potentially lead to scarcity, potentially driving up prices if the demand remains strong.
The remarkable surge in SHIB’s market value this week can be attributed to this heightened burn rate. This coincided with a broader market resurgence, driven by the approval of several spot Bitcoin ETFs in the United States.
These events resulted in SHIB’s price increasing by approximately 5% over the past week, reaching a peak of $0.0000105.
Declining Shibarium Transactions
Simultaneously, the Shibarium network has experienced a noticeable decrease in daily transactions over the past month. Daily transaction numbers have plummeted from an average of 7 million in December 2023 to less than 2 million this month.
In fact, daily transactions have dropped significantly, from 7.84 million on December 28, 2023, to a mere 1.16 million as of January 13, 2024.
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