Shiba Inu’s burn rate soars 12,000%, but SHIB’s price tanks

TL;DR

Shiba Inu’s burn rate increased over 12,000% in the last 24 hours, but SHIB’s price is down 10% daily. The Shibarium layer 2 scaling solution saw a sharp increase in activity, indicating growing interest and community support.

The Last Spike

Shiba Inu burn rate has skyrocketed over 12,000% in the last 24 hours. The largest transaction occurred yesterday (June 17) when almost 5.1 million assets were sent to a null address.

The combustion mechanism is designed to reduce the supply of the meme coin and create a potential increase in price due to scarcity. It is quite complicated and involves both automatic and manual burns. Those curious to learn more about the program can read our dedicated guide here.

The price of Shiba Inu is deep in the red today (June 18), plunging 10% (according to CoinGecko data). Its decline coincided with a general market decline where Bitcoin (BTC) briefly dipped below $65,000, while Ethereum (ETH) lost the $3,500 support level.

SHIB Price, Source: CoinGecko

It is worth noting that the increase in consumption rate may have been caused by investors moving to liquidate their positions during the current market uncertainty and increased volatility. The same thing happened a week ago when the price of SHIB was falling again. After all, a percentage of tokens are burned with each transaction.

The brief resurgence of Shibarium

Shiba Inu’s layer 2 scaling solution, Shibarium, has also gained momentum of late. As CryptoPotato reported on June 17, the number of new accounts on the network soared by more than 860%. New contracts also headed north, from just 7 to 34 in a 24-hour period.

This resurgence could indicate further interest in the protocol and higher levels of activity. It reflects a growing community that could help build a stronger ecosystem.

Shibarium officially went live in August last year and has since achieved countless milestones. By the end of May, the total number of blocks processed on the network exceeded 5 million, while before that, the total number of transactions exceeded 400 million.

The L2 blockchain solution aims to elevate SHIB above its rivals in the meme coin niche by reducing transaction costs, improving speed and improving scalability. If you want to know more, feel free to watch our video below:

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