Shiba Inu Burn Rate Explodes Over 4000%, What’s Behind It?

Shiba Inu burn initiative has yet again experienced a significant rise in its token burn rate, which saw millions of SHIB being sent to the burn address, thereby reducing its circulating supply.

Shiba Inu Burn Rate On The Rise

By lowering the number of SHIB tokens in circulation, the Shiba Inu burn feature seeks to decrease the total supply of the meme coin, making it more valuable and possibly improving the price of Shiba Inu.

According to Shibburn – the platform that tracks SHIB burn, the burn rate has increased drastically in the last 24 hours. Data from the tracking platform revealed that the feature has increased by over 4205% in the past day.

Shiba Inu
SHIB burn rate up by 4205% | Source: Shibburn

The rise in burn rate comes after the Shiba Inu team announced the launch of its ERC-404 token standard-based Non-Fungible Token (NFT) collection dubbed SHEboshi. Shibburn disclosed that over 86 million SHIB tokens have been sent to the burn address in the last 24 hours, resulting in an uptick.

This suggests that the Shiba Inu community is committed to supporting the initiative, decreasing the current circulating supply of SHIB, and boosting its price.

The upturn was triggered by two transactions that incinerated the aforementioned Shiba Inu tokens. According to the tracking platform, the transactions destroyed a total of 86,015,940 SHIB.

A wallet address identified as 0x60812…887239fe80 carried out the majority of the burn, transferring 85,015,940 SHIB to the dead wallet 14 hours ago. Meanwhile, the second transaction made by the wallet address 0x167a93…e191aa6476 saw 1 million SHIB tokens being destroyed.

The burn rate may have increased by more than 4,000% today, but it has struggled in the past 7 days. Reports from the hourly SHIB burn update on X (formerly Twitter) show a 36% increase in the past week, with approximately 146 million SHIB tokens incinerated. Since the introduction of the burn feature, over 410.70 trillion SHIB have been sent to the burn wallet.

Consequently, there are over 581.44 trillion SHIB in circulation at the moment from its initial supply of 999.98 trillion SHIB. With these numbers, it seems that the SHIB community still has work to do to improve the burn.

Factors That Might Propel SHIB And Its Ecosystem

Aside from the burn initiative, there are other factors that are considered to improve the altcoin and its ecosystem. One of the factors believed that might impact it is SHEboshi.

SHEboshi seeks to transform the SHIB ecosystem by making it easier to burn SHIB and other Shibarium tokens. With the SHEboshi NFT collections, the team aims to attain a higher burn rate.

Another factor is the development pattern adopted by the team. If the team manages to persist with cutting-edge trends, it could usher in more users to the platform thereby improving the ecosystem.

Shiba Inu
SHIB trading at $0.00000966 on the 1D chart | Source: SHIBUSDT on Tradingview.com

Featured image from iStock, chart from Tradingview.com

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