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Shiba Inu Burn Rate Spikes Over 300%, What’s Driving It?

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Shiba Inu continues to observe a considerable number of tokens being taken out of circulation, as its burn initiative witnessed a notable rise in the past day, suggesting a strong drive to lower the token’s supply.

By lowering the number of SHIB tokens in circulation, the Shiba Inu burn initiative seeks to decrease the overall supply of the token. Consequently, this makes the digital asset more valuable and possibly raises the price of SHIB.

Shiba Inu Burn Initiative Sees Uptick Of Over 300%

According to the burn tracker Shibburn, the last 24 hours have seen a significant spike in the Shiba Inu burn rate. Data from Shibburn reveals that the burn initiative recorded a 335.94% increase, fueling optimism among the SHIB community and crypto enthusiasts.

Shibburn shows that over 298 million SHIB tokens were incinerated in the past day, resulting in the burn rate rising by 335%. The development coincides with the current upswing in Shiba Inu’s price today, rising by over 31% in the past week.

The recent burn rate surge was triggered by three large burn transactions destroying over 295 million SHIB in less than 8 hours. 46 million SHIB tokens were destroyed by the unknown wallet address 0xb23360ccdd9ed1b…09c8d7c460 in the first transaction.

Additionally, the second transaction carried out a few hours later by the wallet address 0xda51fc5ffbc6a99…93a2f57705 which was the largest, saw 211,489,784 SHIB being sent to the burn wallet. Meanwhile, an hour later, 37,907,585 Shiba Inu tokens were burned in the third transaction, initiated by the wallet address 0x607ef3782f60074…ca6c396b74.

SHIB daily burn rate up by 335.94% | Source: Shibburn

It is noteworthy that the Shiba Inu burn initiative has witnessed a significant rise in burn rate in the past week, with over 14 billion SHIB being destroyed, resulting in an increase of 5,030%.

This uptick was due to a recent massive burn from the Shiba Inu team. On Saturday, March 9, the team burned more than 13.4 billion tokens, valued at $485,000 as of the time of the transaction. 

Presently, around 410.72 trillion SHIB have been burned since the feature was launched in 2021, bringing the total circulating supply to 582.27 trillion SHIB, according to data from the burn tracking platform.

Shytoshi Kusama Addresses SHIB And Floki Burn Comparison

While the SHIB burn rate has increased over time, some community members are still not pleased with the result. A pseudonymous user on the social media platform X has asked the project’s lead developer, Shytoshi Kusama, why he can not burn 1 trillion SHIB like its rival, Floki Inu.

However, Kusama responded by saying, “he does not have a trillion SHIB to burn,” in contrast to Floki developers. He further noted that the project was “6 months and completely decentralized” before he became a part of it, and as a result, he carries out these burns just to benefit the community.

Shiba Inu
SHIB trading at $0.00003460 on the 1D chart | Source: SHIBUSDT on Tradingview.com

Featured image from iStock, chart from Tradingview.com

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