SHIB Burn Rate Jump 1,100% Amid Expectations Of Shibarium Relaunch
August 22 2023 - 7:00PM
NEWSBTC
Off the back of the much-anticipated Shibarium launch, the SHIB
burn rate has seen a tremendous rise. This surge in the burn rate
comes despite the Layer 2 blockchain running into problems on the
day of its launch last week, and still being in private mode. But
while it could point to renewed vigor among the meme coin’s
investors, something else seems to be driving this accelerated burn
rate. SHIB Burn Rate Is Up 1,108% In One Day According to data from
Shiba Inu burn tracking website Shibburn, there has been a
remarkable increase in burn rate in the last 24 hours compared to
the prior day. In total, there have been over 1.046 billion tokens
burned, which translates to a 1,108.78% increase during this
timeframe. Related Reading: AVAX Price Bucks Under The Pressure Of
Upcoming $102 Million Token Unlock This is in stark contrast to the
previous day’s figures which came out at around 100 million tokens
burned. However, while the jump in burn rate is interesting, the
address doing most of the SHIB burn is even more interesting.
Looking at the burn addresses posted by Shibburn, one address keeps
popping up and that is the 0x4be2 address. A quick look on-chain
revealed that this address is actually the contract address for the
MARSWAP (MSWAP) token. Burn rate up over 1,100% | Source: Shibburn
This token seems to dedicate a portion of fees generated from
transactions toward SHIB burn and as it gains popularity, the
number of SHIB tokens being burned has jumped. So far, Marswap
accounts for about 40% of burnt tokens. But a single address,
0xcf6d, which is the ShibaSwap LP Token (SSLP) contract address,
burned 418,719,732 tokens in what has been the single largest burn
event in the last day. Token price remains highly volatile |
Source: SHIBUSD on Tradingview.com How Is The Token Price
Responding? Despite the marked increase in the SHIB burn rate, the
price of the meme coin has not responded as positively as expected.
The token price seems to be keeping in line with the general crypto
market sentiment and continues to trade in the red. Related
Reading: Bitcoin Liquidations Top $500 Million Amid $1 Billion
Crypto Decimation Although there has been a small shift in the last
hour at the time of this writing, with SHIB’s price moving up a
meager 0.16%, its price is still taking losses of 1.48% on the
daily chart. Even more concerning is its significant loss of 21.94%
on the weekly chart. Given this trend, it is unlikely that SHIB
will make a break from the market and rally. Rather, a recovery
from here will follow a Bitcoin rise. However, one event that could
trigger a recovery is the Shibarium relaunch. According to lead
developer Shytoshi Kusama, the layer 2 network could be gearing up
for a relaunch in the coming days. Follow Best Owie on Twitter for
market insights, updates, and the occasional funny tweet… Featured
image from Analytics Insight, chart from TradingView.com
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