Surge in Burn Rate
The Shiba Inu (SHIB) burn rate has skyrocketed by over 17,000% in the past 24 hours, according to Shibburn. This surge has seen a massive 56 million SHIB tokens burned.
Impact on Price
The burn initiative has been instrumental in boosting SHIB’s price, which has recently made a notable recovery. Large-scale burns have consistently had a positive impact on its value.
Sustaining the Burn Rate
However, the burn rate has been inconsistent, with periods of low activity. It’s crucial to maintain a high burn rate to continue supporting SHIB’s price.
Shibarium’s Role
The Layer-2 network Shibarium is expected to play a key role in sustaining the burn rate. In December 2023, Shibarium alone contributed to the burning of over 33.8 billion SHIB tokens.
Shibarium’s Decline
Unfortunately, Shibarium’s daily transactions have declined by 99% this month. This decline is a concern as network activity was crucial for the massive burns in December.
Importance of Network Activity
Increased network activity on Shibarium could help SHIB break its all-time high and potentially surpass it. As of now, SHIB is trading at around $0.00003116, up over 3% in the past 24 hours.
