Shiba Inu Burn Rate Skyrockets by 12,000% but SHIB Price Tanks

The NFT Unicorn SHIB-BURN_CB-11 Shiba Inu Burn Rate Skyrockets by 12,000% but SHIB Price Tanks Crypto News

TL;DR

  • Shiba Inu’s burn rate surged over 12,000% in the past 24 hours, but the SHIB price is down 10% daily.
  • The layer-2 scaling solution Shibarium saw a sharp increase in activity, indicating growing interest and community support.

The Latest Spike

Shiba Inu’s burn rate soared by over 12,000% in the past 24 hours. The largest single transaction occurred yesterday (June 17) when almost 5.1 million assets were sent to a null address.

The burning mechanism is designed to reduce the supply of the meme coin and create a potential price increase through scarcity. It is rather complicated and involves both automatic and manual burns. Those curious to learn more about the program can read our dedicated guide here

Shiba Inu’s price is deep in the red today (June 18), sinking by 10% (per CoinGecko’s data). Its plunge coincides with an overall market decline where Bitcoin (BTC) briefly slipped below $65K, whereas Ethereum (ETH) lost the support level of $3,500.

The NFT Unicorn svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZpZXdCb3g9IjAgMCA4MzMgNTgyIiB3aWR0aD0iODMzIiBoZWlnaHQ9IjU4MiIgZGF0YS11PSJodHRwcyUzQSUyRiUyRmNyeXB0b3BvdGF0by5jb20lMkZ3cC1jb250ZW50JTJGdXBsb2FkcyUyRjIwMjQlMkYwNiUyRlNISUItUHJpY2UtMi5wbmciIGRhdGEtdz0iODMzIiBkYXRhLWg9IjU4MiIgZGF0YS1iaXA9IiI+PC9zdmc+ Shiba Inu Burn Rate Skyrockets by 12,000% but SHIB Price Tanks Crypto News
SHIB Price, Source: CoinGecko

It is worth noting that the burn rate increase might have been caused by investors moving to liquidate their positions during the ongoing market uncertainty and enhanced volatility. The same thing happened a week ago when SHIB’s price was sinking again. After all, a percentage of tokens is burned with each transaction.

Shibarium’s Brief Resurgence

Shiba Inu’s layer-2 scaling solution, Shibarium, has also gained momentum lately. As CryptoPotato reported on June 17, the number of new accounts on the network skyrocketed by over 860%. New contracts also headed north—from just 7 to 34 in the span of 24 hours.

This resurgence could indicate an additional interest in the protocol and higher levels of activity. It reflects a growing community that might help build a stronger ecosystem.

Shibarium officially went live in August last year and has since achieved countless milestones. At the end of May, the total number of blocks processed on the network exceeded 5 million, while prior to that, total transactions surpassed the 400 million mark.

The L2 blockchain solution aims to elevate SHIB above its rivals in the meme coin niche by reducing transaction costs, improving speed, and enhancing scalability. If you want to learn more about it, feel free to take a look at our video below:

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Source: CryptoPotato