Why Shiba Inu’s (SHIB) Burn Rate Skyrocketed 961% in 7 Days

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Daily transactions on Shiba Inu’s layer-2 network, Shibarium, recorded a significant spike since the end of November, hinting at an important adoption for the blockchain.

This notable increase in transaction activity resulted in the SHIB token burn rate increasing by 650% during the same period. However, Shiba Inu’s price remains relatively flat.

Shibarium Daily Transaction Volume Skyrocket

Shibairum has enjoyed record growth in its daily transactions numbers. On-chain data shows that the transactions on the network have surged by a staggering 44,397.9% since the end of November.

On November 29, Shibarium’s daily transactions stood at under 20,000. However, the network saw the number rise to 748,000 as of November 30. This remarkable uptick persisted into December. During the first two days of the month, the network recorded more than 12 million transactions.

Shibarium Transaction Count. Source: ShibariumScan

Notably, this substantial transaction surge stands out against the network’s total transaction volume of 21 million, with the past 24 hours alone accounting for around 35% of all network transactions.

Read more: How To Buy Shiba Inu (SHIB) and Everything You Need To Know

Other Shibarium network metrics also reflect substantial growth. The layer-2 blockchain now boasts 1.27 million wallets and has generated 1.92 million blocks, signifying notable progress within its ecosystem. The total value locked (TVL) on Shibarium has also risen to $775,000, per DeFiLlama data.

Despite the impressive numbers, market specialist Lucie has called for more adoption of the network.

“Shibarium is open for all to build upon. We don’t keep tabs on projects launching – it’s decentralized! Just like on ETH or Polygon, any project can kick off here. But, a word of caution: DYOR (Do Your Own Research). Stay vigilant and avoid falling into traps,” Lucie said.

Over 500 Million SHIB Burnt With Prices Static

The record transaction volume on Shibarium has significantly impacted Shiba Inu’s SHIB burning activity. The meme coin’s burn rate soared by 961% over seven days and more than 600% in the past 24 hours.

Roughly 527,485,988 SHIB were burnt in the past week, with an additional 20,515,829 SHIB burnt in the last 24 hours.

Shiba Inu SHIB burn
Shiba Inu Burn Rate. Source: ShibBurn

Token burns typically aim to reduce the circulating supply of a coin. A decrease in supply can theoretically lead to scarcity, potentially driving up the price if demand remains constant.

Read more: Shiba Inu (SHIB) Price Prediction 2023/2025/2030

However, this theory has been found wanting as SHIB’s price remains relatively mute. The asset is up 0.83% during the last 24 hours and has increased by 9.6% over the past month.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.





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