According to the CoinSpeaker Analytics:

Shiba Inu $SHIB Burn Rate Skyrockets 13,900% as SHIB Price Eyes Rebound

Shiba Inu (SHIB) has seen a huge spike in its burn rate, suggesting a possible price rebound. According to the Shibburn tracker, the platform that monitors the rate and amount of SHIB burnt, the burn rate has spiked by more than 13,900% in the last 24 hours. As a result, 96,634,993 SHIB tokens have been sent to dead wallets. This notably aligns with the community’s effort to reduce the token’s circulating supply.

This massive burn rate surge coincides with an increase in the price of SHIB earlier this week. After this short-paced uptick, the token’s price has fluctuated. At the time of this writing, SHIB traded at $0.000014, corresponding with a 1.09% dip, per CoinMarketCap data.

The burn rate has reignited new hopes for a potential price rebound. From the circulating supply of about 583 trillion SHIB, the project has successfully destroyed over 410 trillion tokens.

The huge burn rate comes after an automated burn mechanism – ShibTorch – went live on Shibarium recently. Precisely, on August 9, the Layer 2 network, designed for the Shiba Inu ecosystem, underwent a crucial hard fork. The upgrade involved deploying a new version of the Bor software (v1.1.2-bone).

Upon successfully deploying at the block height of 6,206,570, the upgrade implemented a new burn mechanism designed to automate the burning of Shiba Inu. SHIB marketing lead LUCIE shared a few details on how the mechanism works. She clarified that it would be tied to users’ transaction fees.

Therefore, 70% of all base transaction fees collected on the network will automatically go into the burn wallet. This leaves the remaining 30% for network maintenance, development, and growth. Noteworthy, the transaction fees are converted to SHIB before being burned.

As expected from its inception, this new burn mechanism is significantly reducing the amount of SHIB in circulation, as evident in the recent percentage burn rate reported.