The burn rate of the meme-inspired cryptocurrency Shiba Inu ($SHIB) has recently surged by more than 8,000% as millions of tokens are moved to inaccessible wallets and effectively removed from circulation.
According to SHIB burn tracking platform Shibburn, over the last 24-hour period a total of 50.18 million tokens were burned. The figure came through only two transactions that show large holders were burning tokens, rather than coming from several individual entities.
HOURLY SHIB UPDATE$SHIB Price: $0.00000861 (1hr 0.08% ▲ | 24hr -1.41% ▼ )— Shibburn (@shibburn) May 22, 2023
Market Cap: $5,070,671,510 (-1.45% ▼)
Total Supply: 589,357,912,568,032
Past 24Hrs: 50,188,691 (8627.82% ▲)
Past 7 Days: 3,093,934,362 (-36.07% ▼)
The burn was made via two burns one for 39,511,911 SHIB and another for 10,676,779 SHIB. Cumulatively, the efforts of the SHIB community have resulted in the burn of 3,093,934,362 SHIB coins in the past week.
Since the meme-inspired cryptocurrency was launched, around 410.63 trillion tokens have been destroyed, from a total supply of 1 quadrillion. As CryptoGlobe reported, the recently launched Koyo token project has moved forward with a major burn of the meme-inspired cryptocurrency last month, destroying an astounding 1.49 billion tokens in a single transaction.
Shytoshi Kusama, SHIB’s lead developer, recently shared his thoughts on the relationship between Shiba Inu’s price and burns in a telegram chat. According to Kusama, the price of Shiba Inu cannot be influenced solely by burns, and more burns are needed to move its price.
Recently, the Shiba Inu team has unveiled the intricacies of the SHIB burn mechanism on the Shibarium Layer 2 network, which currently operates in beta test mode.
For every transaction that occurs on Shibarium, a fee in $BONE is levied. This fee is locked in a contract, with the team receiving 30% of it for network maintenance, and 70% being burned. Recently shared screenshots indicate that the fee can be burned only when the contract contains more than 10 BONE. Then, the tokens can be converted into SHIB and burned,
As CryptoGlobe reported, a newly formed mysterious SHIB wallet has recently accumulated a whopping 20 trillion tokens for around $176.8 million, making it the fifth-largest holder of the meme-inspired cryptocurrency. The investor now holds around 2% of the cryptocurrency’s supply.