Almost half a billion SHIB tokens have been removed from circulation in 24 hours, spiking the burning rate. According to data from Shibburn, approximately 455 million Shiba Inu tokens have been burned in the last 24 hours, a 1,322.79% increase in the burning rate in one day.
One of the mechanisms that check the saturation of asset saturation in the crypto market is burning. Many uncapped crypto assets rely on mechanisms to remove the bulk of coins in circulation, thereby limiting supply and maintaining relevance. Shiba Inu is one of the tokens participating in the token burning.
Aside from the current burning activity, Shibburn noted a significant increase in burning rates over the past few days following the launch of Shibarium’s beta testnet, PuppyNet. On March 9th, before the beta launch, the Shiba Inu burn rate increased by 28,000% in one day, showing the total number of tokens burned was 2,057,811,344 Shiba Inu.
Massive Spike In Burn Rate After Shibarium Testnet Launched
After much waiting, Shiba Inu core developer revealed Shibarium Beta testnet called PuppyNet went live on March 11. However, the network recorded a remarkably unusual rise in burn rate after the launch of the testnet.
On Monday, two days after the PuppyNet test network went live, the Shiba Inu burn rate increased by 2,452%. The token burn resulted in 602.5 million SHIB being removed from the circulating supply within 24 hours.
However, it was not the same on March 14th, as the burn rate only increased by 200%. The 1,322.79% burn rate is now closer to Monday’s.
At press time, approximately 454,985,164 Shiba Inu tokens have entered the burned wallet, with over 410 trillion SHIB burned from the initial token supply.
A possible reason for this high burn rate is the increase in network activity after the release of PuppyNet. Remember that last month, SHIBARMY Tweeted that SHIB is burned will happen in Shibarium with every transaction.
The reason is that the BONE token used to pay transaction fees in Shibarium is converted to Shiba Inu. And the token must enter an address or a wallet that is burned to prevent it from increasing the supply of Shiba Inu.
According to speculation, the Shiba Inu community will increase its burning rate after the launch of the Shibarium mainnet. The increased burning rate will see trillions of SHIB coins in wallets die.
SHIB share price changes
The myth behind token burning is that it drives up asset prices by reducing the circulating supply, creating scarcity. Following this logic, one would expect a new spike in the burn rate to reflect the SHIB price. However, the reverse is seen here, as Shiba Inu witnessed a drop in price over the past week.
At press time, Shiba Inu has recorded a decrease of 1.89% in the last seven days, with a loss of 5.18% in 24 hours. But SHIB recorded a significant price increase on March 13 and now can be sold for 0.000001089 US Dollar.
Featured images from Pixabay and charts from Tradingview.com