Shiba Inu token burn rate has continued on a mild but steady increase, even amid the ongoing price pullbacks. Data from Shibburn indicated that over 8 million SHIB tokens entered the dead wallets over the past 24 hours. The number represents a 0.78% increase in burn rate from the last value.
Shiba Inu burn rate has spiked notably over the past month. The recent burn rate spike, mild as it is, suggests the SHIB token continues to see a slow but steady uptick in on-chain transactions despite the depressing price.
SHIB Price Tanks Amid Burn Rate Spikes
While the Shiba Inu team is consistently burning SHIB tokens to reduce supply and boost its price, the token is reacting negatively on the charts today.
Related Reading: PancakeSwap TVL Drops 12%, Did This Exchange Received A Lethal Blow?
Despite the recent burn rate spikes, the SHIB token price met a mild correction. Shiba Inu trades at $0.000010 with a 24-hour price decline of 0.47% at press time.
The ongoing downturn has led SHIB to surrender some of its past weeks’ gains, with a 2.05% decline over the past seven days. In addition, Shiba Inu lost its monthly gains and now shows a 15.34% price decline over the past 30 days.
Nevertheless, SHIB retained its position as the second-largest meme coin by market capitalization after the forerunner, DOGE.
Shibarium Could Lead To An Increase In Shiba Inu Price
Shibarium is an Ethereum layer-2 protocol blockchain developed by the Shiba Inu team. Although the mainnet is not yet released, the testnet has seen a lot of interest and has received enormous support from community members.
This interest is evident in the increased number of transactions recorded on the testnet. With its current outlook and bullish sentiment among community members, Shiba Inu might be up for a short-term rebound. That is if the activities on Shibarium increase as expected, it could bring more traction for SHIB, leading to more adoption of the meme coin.
Notably, 70% of gas fees get converted to SHIB and are sent to the burn wallets with each transaction on Shibarium. Some observers speculate that a long-term price rally for SHIB will partly depend on the increased transactions on Shibarium which will facilitate the SHIB burn.
A Shibarium documentation released by the SHIB developers revealed that the layer-2 solution would reduce transaction fees to become more cost-effective than Ethereum. Shibarium would reduce Shiba Inu token circulation, inducing scarcity and affecting the price through its burn mechanisms.
Featured image from Pexels and chart from Tradingview.com
