Shiba Inu (SHIB) Burn Rate Explodes 8,500%: Will The Price Follow?

TL;DR

Shiba Inu’s burn rate jumped significantly, eliminating millions of tokens.
The increased burn activity and network developments could boost SHIB’s price.

After several days of witnessing no substantial progress on its burning program, the popular meme coin Shiba Inu finally saw some advancement.

According to data, the burn rate has skyrocketed by over 8,500% in the past 24 hours, resulting in approximately 86 million tokens removed from circulation.

The mechanism aims to reduce the tremendous circulating supply of SHIB, making it scarcer and potentially more valuable in the future. Shibburn’s data shows that more than 41% of the asset’s maximum supply has already been destroyed. 

The process is rather complicated and includes manual and automated burns. Specifically, every time a transaction is made on the network, a certain percentage of the transaction fee is transferred to a null address. 

Last month, the team behind Shiba Inu introduced “a transformative token burning mechanism” that aims to automate the entire system.

The latest spike coincides with Shibarium’s resurgence. As CryptoPotato reported earlier this week, total transactions on the network exceeded the 360 million mark. Those willing to learn more about the purposes and specifics of the feature could take a look at our dedicated video below:

The successful execution of the burning mechanism and the further development of Shibarium have been touted as factors that may positively impact SHIB’s price. The latter has risen 2.5% in the past 24 hours and nearly 5% on a two-week scale (per CoinGecko’s data).