How 9 billion Shiba Inu (SHIB) tokens were destroyed

Shiba Inu's SHIB burn rate has seen a massive increase of nearly 6,000% in the past week, burning approximately 9.4 billion tokens.

This increased burning activity comes at a time when transaction volume is decreasing on Shibarium, the MemCoin Layer 2 network.

SHIB burn rate 6,000%

Over the past week, Shiba Inu has seen a 5,972.36% increase in its burn rate, removing more than 9.4 billion tokens from circulation. The amount of the burn represents more than 10% of the total number of SHIB tokens destroyed last year.

Token Burs typically aim to reduce coin circulation. A decrease in supply could theoretically lead to a shortage, which could lead to higher prices if demand is high.

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A significant increase in the SHIB market price this week may be associated with a higher burn rate. This increase coincided with a resurgence in the broader market, spurred by the approval of several Bitcoin ETFs in the US.

These events caused SHIB's price to rise by around 5% last week to a high of $0.0000105.

Shibarium transactions have decreased

Likewise, Shibarium's network has endured a significant drop in daily transactions over the past month. Daily transactions fell from an average of 7 million to 2 million in December 2023.

In fact, daily transactions dropped from 7.84 million on December 28, 2023, to 1.16 million on January 13, 2024.

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Still, other network metrics reflect Shibarium's significant growth and adoption since its inception. The Layer 2 blockchain now holds 1.3 million wallets and has produced 2.64 million blocks. In addition, the total value (TVL) of assets locked on Shibarium increased to around $1 million earlier this month.