- Daily transactions on Shiba Inu Layer- Shibarium have skyrocketed by 1,054%, rising from 28,110 to 324,590 since October 18.
- Despite the substantial increase in burn activity and transaction volume, the price of SHIB remains relatively stable, currently sitting at $0.00001864.
The burn rate of Shiba Inu (SHIB) has seen a significant surge, with approximately 323 million tokens taken out of circulation in the past week, resulting in a 941% increase. This sharp rise in burn activity coincides with a surge in transactions on Shibarium, the Layer 2 blockchain of the Shiba Inu ecosystem. The platform recently recorded a 1,054% increase in daily transactions.
Shiba Inu Burn Rate Skyrockets By 941%
Over the past week, 322.98 million SHIB tokens moved out permanently from circulation through the burn process with a transfer to a “dead wallet”, per the CNF report. Thus, the weekly burn rate surged 941.55%. This burn process reduces the available supply of SHIB tokens, which may push the price up.
Moreover, the daily burn rate has jumped by 222.61% with 5.1 million SHIB burned in that period. Burning tokens has been a part of the Shiba Inu community’s long-term strategy to reduce the circulating supply of SHIB and enhance its value. Although the 323 million SHIB burned is relatively small compared to the meme coin total supply, it reflects consistent community efforts.
However, despite the recent spike in the Shiba Inu burn rate, the SHIB price remained relatively stable. At press time, the Shiba Inu price gained 0.61% to $0.00001864 on Monday, October 21. Nonetheless, the 24-hour trade volume for SHIB soared 30.57% to $353.35 million.
Despite the slight gain, long liquidations amounted to $231,440 in the last 24 hours, according to Coinglass data. However, since the amount is not that significant, it may not have much of an effect on the SHIB price. Meanwhile, analysts remain optimistic about Shiba Inu’s future as it holds above the crucial level of $0.00001850, reported CNF.
It is now approaching the crucial resistance zone between $0.000020 and $0.000021. Analysts predict a SHIB price rally to the $0.00003 level if the meme coin enters and breaks out from the approaching resistance zone.
Shibarium’s Transaction Volume Soars by 1,054%
Shibarium, Shiba Inu’s Layer 2 blockchain, has also experienced a massive increase in activity. Recent data shows that daily transactions on Shibarium skyrocketed by 1,054% in the past few days, rising from 28,110 to 324,590. This increase began on October 18, following a long period of relatively flat transaction volume when the average volume stood at 7,000 transactions per day.
A key feature of Shibarium’s operation is its contribution to SHIB’s burn mechanism. Each transaction on Shibarium reduces the overall supply of SHIB, helping to maintain a deflationary token model as network usage increases. The community-driven initiative, ShibTorch, facilitates these burns with a portion of transaction fees being locked in a burn contract.
This process, launched in August, allows anyone in the network to initiate a burn in the SHIB community. Shibarium validators are compensated through priority fees, while base transaction fees are sent to the burn contract. The BONE token, used in both ShibaSwap governance and gas fees for Shibarium, keeps accumulating in this burn contract to aid validators.
