Huge Increase in Shiba Inu Burn Rate: Can the SHIB Price Rebound?

TL;DR

• The Shiba Inu burn rate exploded again, an effort aimed to reduce the asset’s circulating supply and make SHIB more valuable in time.
• However, the price remains deep in red territory amid an overall market collapse. 

SHIB Burn Rate Takes Off

The team behind the popular meme coin – Shiba Inu – keeps removing a substantial amount of tokens from circulation. Data shows that the burn rate has skyrocketed by almost 500% in the past 24 hours and 193% on a weekly scale. This resulted in over 774 million SHIB assets being destroyed.

The program’s ultimate goal is to reduce the coin’s tremendous supply, making it scarcer and potentially more valuable in the future. 

As CryptoPotato reported, the burn rate exploded by 50,000% at one point in April, while the amount of tokens removed from circulation throughout March surpassed 15.5 billion (a 2,300% increase compared to the figure observed in February).

Despite those efforts, the price of Shiba Inu is down 8% in the last 24 hours and 25% weekly (per CoinGecko’s data). Its downtrend coincides with a broader market decline, with Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and multiple other cryptocurrencies nosediving as of late.

Shibarium’s Role

Another essential element that can positively impact SHIB’s value in the future is the advancement of the layer-2 scaling solution – Shibarium. The network experienced a significant revival in the past several days, with the number of daily transactions and active accounts heading north.

Officially introduced last summer, the feature is designed to foster the development of the meme coin by reducing transaction costs, improving speed, and enhancing scalability.

CryptoPotato reported numerous milestones that Shibarium achieved over the past few months. For example, total blocks on the network exceeded the 4 million level, whereas total transactions crossed 400 million. Those willing to learn more about the feature can take a look at our dedicated video below: