The spotlight is once again on the Shiba Inu (SHIB) burn rate, which witnessed a substantial drop merely a day after registering a remarkable surge in burn rate activity. This development has undoubtedly sparked concerns, given the pivotal role that token burns play in the SHIB ecosystem.
Shiba Inu’s burn rate experiences a 99% decrease.
According to data from the burn tracking platform Shibburn, the burn rate of Shiba Inu (SHIB) has witnessed a staggering decline of 99.5% within the span of the last 24 hours. This stark reduction stands in stark contrast to the previous day’s activity, during which the burn rate skyrocketed by an astonishing 18,000%. However, it’s important to delve into the specifics of this surge, which was primarily fueled by a single transaction involving a particular address that incinerated a whopping 650 million SHIB tokens in one fell swoop. Since that notable event, the burn rate has seen a significant downturn, with only slightly over 3.2 million SHIB tokens being burnt subsequently, thus elucidating the substantial drop observed in the burn rate.
This pronounced decrease in burn rate can be attributed to a notable decline in SHIB trading activity observed over the same 24-hour period. Data sourced from CoinMarketCap reveals a substantial 35% decrease in SHIB’s trading volume during this timeframe. Such diminished trading activity is likely a repercussion of the prevailing bearish sentiment pervading the broader cryptocurrency market, as apprehension mounts regarding the future trajectory of various crypto assets, including SHIB. This unease has been exacerbated by heightened geopolitical tensions between Iran and Israel over the preceding weekend, events that have already exerted a considerable impact on the cryptocurrency market landscape.
However, amidst this prevailing downtrend, there exists a silver lining in the form of additional data provided by Shibburn, indicating that Shiba Inu’s burn rate has surged by an impressive 271% over the course of the past seven days. This sustained momentum in the volume of SHIB tokens being burnt over an extended period underscores the potential significance of this trend, particularly within the context of the ongoing bull market. As demand for the meme coin continues to escalate, this sustained momentum in burn rate could potentially serve as a pivotal factor driving SHIB’s market dynamics in the foreseeable future.
Shibarium is gaining traction in terms of adoption.
Clifford, an active member of the SHIB community, recently highlighted a significant surge in the adoption of Shibarium, the layer-2 network associated with the Shiba Inu ecosystem. He pointed out that within just two days, Shibarium had witnessed an impressive addition of over 209,000 new wallet addresses. At the time of Clifford’s observation, the total count of addresses on Shibarium had surpassed 1.6 million. Notably, this figure has continued to climb and now exceeds 1.78 million, indicating a rapid expansion of the network.
The uptick in Shibarium’s adoption is further underscored by the surge in daily transactions processed on the network. After hitting a recent low of 5,360 transactions on April 10, there has been a noticeable uptrend, culminating in a peak of 419,000 transactions recorded on April 14. This surge in network activity bodes well for Shibarium and its potential impact on SHIB’s burn rate.
Overall, the growing adoption of Shibarium reflects an increasing interest and participation within the SHIB community, potentially paving the way for enhanced functionality and utility within the Shiba Inu ecosystem.
READ MORE ABOUT: Shiba Inu Burn Intensifies, Millions Of Tokens Destroyed: ‘If Someone Can Pull Miracle Recovery It’s SHIB’
