Shiba Inu Burn Rate Explodes 1,300%, What Does it Mean for SHIB’s Price?

TL;DR

• Shiba Inu experienced a significant token burn, with over 100 million SHIB burned in the last 24 hours, marking a 1,300% increase from the previous day’s burn rate.
• This program is part of the strategy to reduce SHIB’s supply, with already 41% of the initial supply burned, in efforts to increase the coin’s value over time.
• Despite the burn, SHIB’s price fell by 4% daily and 3% weekly, in line with the broader crypto market downturn, although the launch of the Shibarium layer-2 solution may provide future price support.

The Latest Burn Data

The popular memecoin – Shiba Inu – witnessed over 100 million tokens burned over the past 24 hours. The figure represents an approximate increase of 1,300% compared to the burning rate the day before.

The project has adopted such a practice to reduce the overall supply of SHIB and potentially make the asset more valuable in time. According to Shibburn, over 41% of the initial supply has already been sent to an address that nobody could access.

Despite the skyrocketing burn figure today, SHIB has been on a downfall in resonance with the entire cryptocurrency market. It plunged around 4% in the last 24 hours (per CoinGecko’s data) and 3% on a weekly basis.

Shiba Inu’s Burn in October

As CryptoPotato recently reported, the memecoin saw almost 1.5 million tokens destroyed throughout the previous month. The record day was October 28, when more than 250 million SHIB were removed from circulation.

The successful execution of the burning program has been touted as a bullish element that could trigger a price rally for the coin. Another factor contributing to a future rise might be the further advancement of the layer-2 scaling solution Shibarium.

The network, which went live at the end of August, aims to elevate Shiba Inu above its rivals in the memecoin realm by improving speed and lowering transaction costs. Those curious to find out more on the matter could take a look at our video below: