Shiba Inu Burn Rate Rises Rapidly In One Week, What’s Been Driving It?
December 07 2023 - 6:00PM
NEWSBTC
The rise in the Shiba Inu burn rate has no doubt been one of the
most notable developments in the community. At the start of the
week, the burn rate rose over 7,000,000% after more than 8 billion
tokens were burned in a 24-hour period. This trend has not slowed
down either given that the burn figures have continued to rise
daily. Shiba Inu Burn Surge Continues Earlier in the week when the
Shiba Inu burn saw one of its highest daily spikes, the total
number of tokens burned had come out to just over 8 billion. At the
time, this was a significant figure given that the burn rate had
been slowing down over the last year. However, there has been a
steady rise in the number of SHIB tokens that are being burned
lately, which raises the question of what is driving the burn.
Related Reading: Bitcoin Bullish Fractal Returns: Analyst Predicts
Another Leg-Up With Price Target After a dip in the burn rate
following the 8 billion daily burn, the community is back at it
again and their zeal has been rewarded once more. On Thursday, the
burn tracker Shibburn reported that the 24-hour figure had crossed
10 million once again. This shows a steady recovery from
Wednesday’s figures which had tanked significantly. Source:
Shibburn As Shibburn data shows, the 10.34 million SHIB that were
burned in the last 24 hours amounts to an 803.4% increase in the
burn rate compared to the previous day. The majority of the burns
have, however, come from a single wallet address. The address sent
a little over 10.2 million SHIB to the burn address. This recent
spike in the BURN rate has also added to the total amount burned on
a weekly basis. The figure comes out to 8.497 billion, which is a
1,969.72% increase from the previous week’s figures. SHIB bulls
struggle to maintain control | Source: SHIBUSD on Tradingview.com
What Is Driving The SHIB Burn? The most significant burn for the
week was the 8.2 billion burn, most of which came from a single
address. This address was the ShibaSwap deployer wallet, which
meant that the SHIB team was the one burning the tokens. Related
Reading: 8 Green Candles: Here’s What Happened To Bitcoin The Last
Time It Appeared The spike in the burn rate coincides with the
increased usage of the Shiba Inu layer 2 blockchain Shibarium,
which marked multiple milestones this week. As the usage has risen
and more fees were collected on the network, the amount of SHIB to
be burned rose drastically. Daily transactions on Shibarium have
consistently come out above 7 million this week, bringing the total
transactions on the network above 51 million. If this continues,
then the burn rate could continue to rise as more usage of the L2
means more fees being burned. Follow Best Owie on X (formerly
Twitter) for market insights, updates, and the occasional funny
tweet… Featured image from NewsBTC, chart from TradingView.com
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