The burn rate of Shiba Inu (CRYPTO: SHIB) has skyrocketed by over 62,000%, resulting in the removal of 505 million SHIB tokens from circulation within a single day.
What Happened: The burn rate of Shiba Inu surged by an astounding 62,000%, leading to the permanent removal of 505.6 million SHIB from circulation. A single transaction was responsible for the burn of 459.3 million SHIB, leading to speculation about its potential effect on SHIB’s price action.
Shibarium, the Layer-2 blockchain of Shiba Inu, saw a significant rise in daily transactions, from 69,800 on March 12 to 1.46 million on March 13. According to data from IntoTheBlock, large SHIB transactions increased by 64%, while daily active addresses grew by 1.1%.
On-chain data shows that 104.14 trillion SHIB ($1.27 billion) is now “in the money”, indicating profitable investments for many. However, a staggering 846.99 trillion SHIB remains "out of the money," signifying losses for a large number of holders.
Also Read: Shiba Inu Coin Burns Over 58 Million Tokens As Weekly Price Increases
As of the time of reporting, SHIB is trading at $0.00001215, with a market cap of $7.16 billion and a 24-hour trading volume exceeding $200 million.
The development team of Shiba Inu is also expanding its ecosystem, with the marketing lead announcing Shib OS, a decentralized governance platform, on March 13.
Why It Matters: The sudden surge in Shiba Inu’s burn rate and the removal of a significant number of tokens from circulation could potentially impact the token’s price.
The increase in daily transactions on Shibarium and the growth in daily active addresses indicate a heightened activity around SHIB. However, with a large amount of SHIB still "out of the money," the future price action of SHIB remains uncertain.
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