- Shiba Inu’s burn rate skyrocketed 857%, with 551.3 million SHIB removed from circulation, aiming to boost scarcity and price.
- However, daily burns have dropped 75.68%, raising concerns about the long-term impact on SHIB’s value.
Shiba Inu (SHIB) has seen a dramatic spike in its burn rate, soaring by an astonishing 857%, according to data from Shibburn. Over the past week, a massive 551.3 million SHIB tokens have been permanently removed from circulation. However, there’s an important catch that investors need to consider.
SHIB Burn Rate Surges, Led by a Single Massive Transaction
The largest burn transaction occurred on March 15, when 459.3 million SHIB were sent to a dead wallet. This transaction alone contributed to a 27,660% spike in daily burns.
Despite the weekly burn rate skyrocketing, the daily burn rate has dropped sharply—falling by 75.68% in the past 24 hours. Only 2.36 million SHIB were burned, raising concerns about sustainability.
SHIB Price Attempts Recovery Amid Burn Activity
Following recent market corrections, ShibaInu has attempted a 4% recovery this week. The burn strategy aims to reduce SHIB’s circulating supply and drive scarcity, ultimately pushing the price toward the ambitious targets of $0.01 or even $1.
According to Shibburn data:
- 410.74 trillion SHIB have been burned to date.
- 4.9 trillion SHIB are staked and temporarily removed from circulation.
- 584.34 trillion SHIB remain in circulation.
Shibarium’s Role in Future SHIB Burns
The Shibarium layer-2 solution is expected to play a critical role in ongoing burns. The Shibarium Updates X account confirmed that burns will continue as part of transaction fees. Notably:
- 70% of BONE gas fees from transactions will be converted into SHIB and burned.
- 30% of BONE fees will support Shibarium’s development.
While the burn numbers are impressive, the declining daily burn rate raises questions about the long-term impact on SHIB’s price. Can SHIB burns maintain momentum and fuel a price surge, or is this just a temporary spike? Time will tell.
