A significant surge has been observed in the burn rate of the popular meme-inspired cryptocurrency Shiba Inu ($SHIB), wirth over 341 million tokens being burned in the past 24-hour period, leading to a staggering 6,936% increase in the burn rate.
The Shiba Inu community, often referred to as the SHIBArmy, has beendiligent in supporting burns of the meme-inspired cryptocurrency. Burning tokens involves sending them to wallets on the blockchain that no one is able to access, effectively reducing the token’s circulating supply.
Among the transactions leading to this spike, the address “0xcf6” has played a pivotal role, being responsible for the burn of nearly 252.8 million SHIB tokens. Blockchain data reveals that the total 341 million tokens burned were sent to dead wallets across five different transactions.
The number of tokens burned in the past day is almost on par with the 377 million SHIB tokens destroyed the previous week. Given the basic economic principles of supply and demand, this significant reduction in circulating SHIB tokens could contribute to an enhanced token value if demand for SHIB rises.
The meme-inspired cryptocurrency charted an impressive rally earlier this month, outperforming most other digital assets and effectively lifting over a trillion of its tokens out of the red and back into profitability.
In just the past week, the surge has amounted to a remarkable 17.4%, which helped push an astounding 18.58 trillion SHIB tokens into profitability. This shift represents a substantial 40.9% of all circulating Shiba Inu tokens now deemed “in the money” by on-chain analytics firm IntoTheBlock.
The digital token’s ability to weather the storm of recent regulatory challenges testifies to the growing confidence and potential surrounding this meme coin. Despite the volatile nature of the market, the crypto has amassed a dedicated community of supporters who are bullish about its long-term prospects and attempt to support it through token burns and its own layer-2 network, Shibarium.
As reported, the native test network of Shiba Inu’s layer-2 Shibarium, fondly called Puppynet, has recorded an impressive tally of over 20 million transactions, emanating from an estimated 16 million wallets. This notable achievement signals the network’s steady march towards a broader release slated for the forthcoming months.
Shibarium represents a milestone for the Shiba Inu ecosystem, whose token is currently running on the Ethereum network which, despite being a highly safe and decentralized blockchain, has drawbacks when it comes to scalability and transaction throughput.
Featured image via Unsplash.
