Shiba Inu’s burn rate spiked drastically, significantly reducing its circulating supply.
The development aligns with SHIB’s recent price increase amid a general upswing in the cryptocurrency market.
The popular meme coin Shiba Inu witnessed a burn rate spike of 1,400% for the past 24 hours, resulting in more than 60 million tokens being removed from circulation. Since the beginning of the year, the number of destroyed assets has surpassed the 9 billion mark.
Shiba Inu has adopted that mechanism to reduce the tremendous circulating supply of SHIB, making it scarcer and potentially more valuable in the future. According to Shibburn, over 41% of the asset’s maximum supply has already been burned.
Every time a transaction is made on the network, a certain percentage of the transaction fee is transferred to a null address. The process is complicated and includes manual and automated burns. Those curious to learn more about it can take a look at our guide here.
Last week, the team behind Shiba Inu and the layer-2 blockchain solution Shibarium introduced “a transformative token burning mechanism” that aims to automate the entire system.
The latest burn rate spike coincides with SHIB’s price rally. The token has climbed by 2.5% in the last 24 hours and 7% on a weekly scale.
Its uptrend, though, could also be attributed to the overall bullish condition of the market, with most cryptocurrencies charting substantial gains.
Bitcoin (BTC) has soared to a three-week high of almost $44,000, Solana (SOL) reclaimed the $100 mark, whereas Cardano’s ADA is up 7%.
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