Shiba Inu (SHIB), the second-largest meme coin by market capitalization, has seen a surge in its burn rate and net inflows in the past week, indicating a growing demand and utility for the token.
According to Shibburn, a platform that tracks SHIB burn transactions, the SHIB community has burned a whopping 115.8 million SHIB in the last 24 hours, an increase of 1,359.82% from the previous day. The majority of the burned tokens, 100 million SHIB, came from a single transfer.
Burning tokens is a process of sending them to a dead-end address, where they cannot be withdrawn or spent. This reduces the circulating supply of the token and makes it more scarce. If the demand for the token also increases, the price is expected to rise as well.
Shiba Inu (SHIB) Burns Are a Regular Occurrence
The SHIB community has been burning tokens regularly to boost the value of the coin, which has been trading sideways for the past month. The total amount of SHIB burned so far is over 41.1 billion, or 0.041% of the total supply.
The increased burn rate coincides with the growing utility and adoption of Shibarium, the Layer-2 solution for SHIB that aims to provide faster and cheaper transactions. Shibarium has reached a new milestone of 3.78 million transactions, with over 13,000 daily transactions and 1.26 million connected wallet addresses.
Shibarium also launched the Shiba Name Service (SNS) this week, which allows users to create human-readable addresses for their wallets, instead of using the traditional alphanumeric strings. This makes it easier and more convenient to send and receive SHIB and other tokens on the Shibarium network.
The lead developer of Shiba Inu, Shytoshi Kusama, stated that significant SHIB burns will only come through the utility and use of Shibarium, and urged the community to support the project and avoid spreading FUD (fear, uncertainty, and doubt).
Meanwhile, the net inflows of SHIB to exchanges have skyrocketed by 1,666% in the past week, according to CryptoQuant. This means that more investors are depositing their SHIB to exchanges, either to sell or to swap for other tokens. This could indicate a high trading activity and interest in SHIB, as well as a potential price volatility.
SHIB is currently trading at $0.000007789, down 2.3% in the last 24 hours, according to CoinMarketCap. It has a market cap of $4.5B and a 24-hour volume of $1.34M. SHIB is ranked 19th among the top cryptocurrencies by market cap.
