As a seasoned crypto investor with a knack for meme coins and a soft spot for adorable Shiba Inus, I can’t help but feel a mix of intrigue and amusement when I see the recent surge in SHIB token burns. The latest spike in SHIB’s burning mechanism, which saw over 96 million tokens being obliterated, is a clear testament to the project’s commitment to scarcity and long-term value.


TL;DR

    SHIB’s burning mechanism skyrocketed in the last 24 hours, with almost 100 million tokens removed from circulation.
    One large transaction comprised over 99% of the entire burned stash.

The Latest Spike

Following an extended period of reduced activity, the Shiba Inu burning mechanism experienced another significant surge. The data indicates that the burn rate soared by approximately 140,000% within the last 24 hours, leading to over 96 million tokens being sent to a non-existent address.

I should note that nearly all my crypto holdings were wiped out following a single transaction about 10 hours ago. A closer look at the situation indicates that the wallet has received funds from the cryptocurrency exchange, Coinbase, on various occasions in the past. This could imply that the owner might be one of their platform users.

Previously, this address had been idle for over five months before it disposed of SHIB tokens. The last transaction associated with this address occurred approximately 154 days ago and involved the exchange of 0.2839 ETH (equivalent to $715) on THORChain.

As a crypto investor, I find it intriguing that over 96 million SHIB were destroyed within the last 24 hours. However, when considering its monetary value, it’s relatively small. Yet, these continuous destruction efforts make the meme coin scarce, which could lead to increased value if demand remains steady or grows in the future.

Right now, Shiba Inu is trading around $0.0000141 according to CoinGecko’s data, which represents a 2% drop over the past week. This sluggish performance mirrors a broader downturn in the meme coin market, with Dogecoin (DOGE), Dogewhatt (WIF), Pepe (PEPE), Bonk Inu (BONK), Brett (BRETT), and numerous others experiencing losses for the same timeframe.

Shiba Inu Burn Rate Explodes by 140,000%: SHIB Price Rebound in the Cards?

Shibarium Embraced a Burning Mechanism, too

At the beginning of this month, Shiba Inu’s layer-2 scaling solution, known as Shibarium, implemented a burning program called “Burn Portal.” Although both the Burn Portal and the initial Shiba Inu burn mechanism share the same overarching objective, they exhibit some distinctive differences.

The integrated burning mechanism within Shibarium is directly linked to its blockchain activities. Every time a transaction takes place on the network, a portion of the transaction fees paid in Bone ShibaSwap (BONE) is allocated to buy SHIB tokens from the market. This accumulated amount is subsequently moved to an empty address.

Instead, the initial system primarily depends more on grassroots initiatives and manual token burns from owners, as opposed to automatic or system-driven actions.

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2024-08-30 11:44