The burn rates of Dogecoin rivals Shiba Inu and FLOKI have seen a significant spike over the last few days. Interestingly, the spikes in the burn rates of both of these meme coins are almost identical, raising questions of whether there is a coordinated effort going on to drastically reduce the available supply of both of these cryptocurrencies.
Shiba Inu Burn Rate Sees 3,963% Rise
The Shiba Inu burn rate which had seen a drawdown over the holidays had begun to pick up once more as soon as the market was back in full swing. It started out the week on a low note. But by Wednesday, the burn rate had begun to spike, starting with a 300% increase in a 24-hour timeframe.
This accelerated burn rate has carried on into Thursday where there has been a more than 10x increase in the spike recorded on Wednesday. According to data from Shibburn, a tracking website for the amount of SHIB burned every day, the SHIB burn rate has spiked another 3,963% in the last day again.
Source: Shibburn
At the beginning of Thursday, this figure sat around a 600% spike. However, a single wallet would send a million SHIB tokens to the burn address in a single transaction, sending the burn rate skyrocketing. This brought the total token burned to over 1.2 million, recording an almost 4,000% spike.
In spite of this spike, there has not been any impact on the SHIB price which continues to trend low at $0.08. This disparity suggests that the burn rate hasn’t had much effect on the SHIB price, and they continue to operate independently.
FLOKI, Another Dogecoin Rival, Sees Burn Rate Spike
Shiba Inu is not the only meme coin that has recorded a significant spike in its burn rate over the last day. FLOKI, another fierce competitor of Dogecoin, has followed the same path as well and its burn initiative has begun to gain popularity among its community.
FLOKI’s burn figure for the last day came out to 218 million tokens removed from circulation. This resulted in a 600% spike in the burn rate which has been ramping up recently. As a result, the total number of coins burned so far has not reached 57.766% of the total token supply.
SourcE: Crypteye
Currently, there are only 4.22 trillion FLOKI tokens left in circulation, translating to 42.234% of the total supply of 10 trillion tokens. This means that there are more FLOKI tokens burned compared to the tokens in circulation.
In the same vein as Shiba Inu, the spike in the daily burn has not positively affected the FLOKI price. It is currently nursing losses of 11.2% on the daily chart at the time of this writing and is down 14.2% on the weekly timeframe.
FLOKI price succumbs to bear pressure | Source: FLOKIUSDT on Tradingview.com
Featured image from The Crypto Times, chart from Tradingview.com