Shiba Inu Burn Rate Surges 880% as 320 Million SHIB Burned in a Week

• Shiba Inu burn rate surged 880% in the past seven days, with over 320 million SHIB tokens burned.
• Shibarium Layer 2 blockchain saw a 1,054% increase in daily transactions, boosting Shiba Inu’s deflationary model.
• Despite recent profit-taking, Shiba Inu remains in a bullish trend, achieving notable price gains over the past week.

The Shiba Inu (SHIB) community has witnessed an 880% surge in its token burn rate, with 320 million SHIB burned in the past seven days. According to data from Shibburn, exactly 320,186,507 SHIB tokens were removed from circulation during this period. This significant increase in burn rate reflects the ongoing efforts to reduce SHIB’s total supply. However, in the past 24 hours, only 1,290,359 SHIB were burned, marking an 84.68% decline compared to the weekly trend.

Understanding SHIB Token Burns 

Token burning is a mechanism where cryptocurrency tokens are permanently removed from circulation. This process involves transferring the tokens to a dead wallet, effectively reducing the available supply of SHIB. Although the 320 million tokens burned represent a small fraction of Shiba Inu’s vast supply, the increase in burning activity indicates that the community remains focused on its long-term goal of decreasing the total supply and boosting the token’s utility.

Fluctuations in Price and Its Relation to Profit Taking 

Recently, the price of Shiba Inu has gone up and down slightly due to people who are taking their profits. The token was down by 2.24% in the past 24 hours and was at $0.00001873. However, Shiba Inu had risen as high as $0.00001956 in the previous trading session and has been on a stable recovery path in the last week. While we are witnessing some correction in the forming market, overall we can observe a higher tendency to buy among investors.

Shibarium Transactions Surge 

Apart from the burn rate uplift, the number of transactions via the Shiba Inu Layer 2 Blockchain, called Shibarium, has risen exponentially. Daily activity on Shibarium has significantly increased with 324,590 placing transactions on the 18th of this month, rising 1,054% compared to the previous days. This meant a radical increase from the 28110 transactions recorded the previous day. This can be seen as a sign of increasing activity within the Shiba Inu ecosystem which will only increase the potential for deflationary tokenomics of SHIB.

The Shiba Inu community works towards the cause of decreasing the total supply of SHIB through Shibarium which will be a Layer 2 solution. Burn portal for the community known as ShibTorch has also started in Shibarium in August. For each interaction with Shibarium, a part of the base fee goes to a specified burn contract. Such a continuous process is beneficial because it means that the more Shibarium will work, the more SHIB tokens will be burned, adhering to the deflationary model.