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Shiba Inu (SHIB), a dog-themed meme coin, has recorded an increase in burn rate within the last 24 hours. The deflationary mechanism spiked by a staggering 201,207% as the community moved to reduce circulating supply and possibly trigger value gain.
Shiba Inu burn removes 4.56 million SHIB
According to Shibburn data, an online platform that monitors the metric, this represents a total of 4,559,620 SHIB taken out of circulation within this period. The development suggests that community members have again seen the need to step in and intervene amid the free fall in price.
Notably, the Shiba Inu ecosystem engages in burn activities as a deflationary mechanism to control token supply in circulation. The idea is to reduce supply volume by sending some SHIB to dead wallets with the hopes that it could create scarcity and increase value.
While the recent spike in burn rate looks significant, the actual volume removed from circulation is quite insignificant. The 4.59 million SHIB is a tiny fraction compared to the total supply, which stands at 589,247,727,012,157 SHIB.
Out of this volume, 4,559,457,934,548 SHIB are staked, leaving 584,688,269,077,609 SHIB in circulating supply.
The burn exercise remains a continuous activity for SHIB, with 410,752,272,987,842 SHIB being the total volume burned from the initial supply.
SHIB price struggles despite record burn activity
Shiba Inu investors will have to wait to see if the recent burn activity will positively impact the price and reverse the declining value of the meme coin. In the last seven days, SHIB has shed 2.84% of its value and continues to fluctuate.
As of this writing, Shiba Inu is changing hands at $0.00001222, representing a 1.69% decline in the last 24 hours. The meme coin had earlier risen to a peak of $0.00001257 but could not sustain the upward momentum as trading volume remained low.
Currently, volume remains in the red zone by 14.77% at $153.6 million. Data suggests that investors are shifting interest to other meme coins like Pepe and Bonk. Nevertheless, community members are optimistic about a bullish September.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team