Shiba Inu (SHIB), the second-largest meme coin, has seen a surge in both its burn rate and price in a development that has excited the SHIB army. According to data provided by Shibburn, a popular tracker for SHIB burns, the rate at which SHIB tokens are being permanently removed from circulation skyrocketed by a staggering 1,088% within a 24-hour period. This significant increase marks the first time since the beginning of the week that the burn rate has entered positive territory.
However, it’s important to note that despite the impressive percentage jump, the actual number of burned tokens remains relatively modest. Shibburn reports that the loyal SHIB community incinerated slightly less than 100,000 SHIB tokens during this period. While seemingly small, this figure represents a considerable improvement compared to Monday, when the SHIB army managed to burn only around 20,000 tokens.
The recent surge in burns coincides with a significant price increase for SHIB. Over the past 24 hours, the price has risen by nearly 6%, climbing from $0.00001307 to its current price of $0.00001385. This positive price movement comes amidst another milestone for the Shiba Inu ecosystem – Shibarium, the layer-2 blockchain solution for SHIB, recently surpassed a new all-time high of 418 million transactions.
It’s worth noting that the current burn rate increase doesn’t solely rely on manual burns by the community. In early August, the SHIB team finally implemented the much-anticipated automated burn mechanism first announced in January 2024. This mechanism, integrated into Shibarium, automatically converts a portion (80%) of gas fees paid on the network from BONE, the Shibarium governance token, into SHIB and sends them to a dead-end wallet, effectively removing them from circulation.
Looking back, the SHIB community has collectively burned a massive 410,727,964,022,502 tokens since the initiative began a few years ago. A significant chunk of this impressive total was contributed by Ethereum co-founder Vitalik Buterin in 2021. Buterin received half of the total SHIB supply (a quadrillion tokens) as a gift from the anonymous creator of SHIB, Ryoshi. However, Buterin, not fully convinced of the project’s potential at the time, opted to burn a large portion of the holding to avoid influencing the price as a major holder.
The recent developments surrounding SHIB burns and price increases offer a glimmer of hope for SHIB enthusiasts. With the automated burn mechanism now in place and ongoing community efforts, the future holds the potential for a more sustainable SHIB ecosystem with a reduced circulating supply. However, it’s crucial for investors to conduct thorough research and understand the inherent volatility associated with meme coins before making any investment decisions.
