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- Despite a decline in transaction activity on the layer 2 network Shibarium, Shiba Inu has experienced a remarkable 6,000% increase in its token burn rate.
- This increase has coincided with a 5% price increase in SHIB as investors turn bullish ahead of key events.
Recent data shows that Shiba Inu has recorded a remarkable increase in its token burn rate. Shiba Inu’s SHIB burn rate has surged by nearly 6,000% in the last week, an unprecedented increase in the new year. This rate has seen just over 9 billion SHIB tokens permanently taken out of circulation. Significantly, this number represents around 10% of the total number of SHIBs burnt last year.
With the launch of the network’s layer 2 project Shibarium, the development team promised an increase in the intensity and quantity of the SHIB tokens. This is now evident with the recent data.
Ideally, token burning is designed to reduce the circulating supply of a coin. This, theoretically, diminishes supply and influences demand, propelling prices higher. Interestingly, coinciding with the surging burn rate, the price of SHIB has recorded an uptick.
At the time of press, the memecoin is trading at $0.000009675 following a 5% surge in the last 7 days. However, the altcoin has taken a temporary hit, dropping by nearly 3% in the last 24 hours, a trend witnessed across the crypto market.
The development team behind the project has been adamant that the burn rate will continue to increase based on the network activity, hence the need to keep building in an effort to reach mass adoption.
In 2024, lead developer Shytoshi Kusama has promised game-changing updates, recently highlighting its plans to conquer the domain space and build infrastructure that is used by 5.3 billion people worldwide.
Hey, #SHIBARMY! While everyone is focused on approved or not, hacked or not, we remained focused on creating what we said we would: A Network State. Since I'm hearing a lot of Web 3 but not enough WEB, let's talk about #SHIB NAME TOKENS. 1/
— Shytoshi Kusama™ (@ShytoshiKusama) January 9, 2024
Shibarium Transactions Take a Hit
Despite macro growth in Shiba Inu’s layer 2 network, data from the last couple of weeks shows a decline. Over the past month, the Shibarium network has witnessed a drop in daily transactions. In December, the transactions averaged 7 million but at the start of the month averaged 2 million. A look at two significant dates shows that on December 28th, transactions stood at 7.84 million, while on January 13 clocked at 1.16 million.
This will be a key concern for some investors who anticipate increased growth in the new year. These investors will take solace in the fact that the network has recorded growth in other metrics. The network has generated 2.64 million blocks and has seen wallets surge past 1.3 million. Owing to this growth in less than a year since launch, the network has celebrated its transactions surpassing the 250 million mark. Furthermore, the total value of assets (TVL) locked on Shibarium surpassed the $1 million mark earlier this year.
If Shibarium can stay on this upward trajectory, it is likely to compete with leading layer 2 networks such as Polygon, Polkadot, Arbitrum, and the Celer Network.
