According to CryptoPotato, Shiba Inu's burn rate has seen a massive increase of 2,800% in the past 24 hours. Despite this, the price of SHIB remains down, reflecting the overall market correction. The burn rate refers to the number of tokens removed from circulation, with nearly 8 million tokens being destroyed in the past day. Over half of these tokens were destroyed in a single transaction approximately 17 hours ago.
The burning program is designed to reduce the vast supply of the meme coin and create potential value appreciation through scarcity. SHIB has a maximum supply of 999,982,363,413,352 tokens, with over 41% already sent to a null address. The burning mechanism is complex and involves both automatic and manual burns.
Recently, the team behind the meme coin introduced a transformative token mechanism to automate the entire system. However, it's important to note that SHIB remains deep in the red, falling by 3% on a daily scale and 6% weekly. This pullback coincides with an overall market correction, where Bitcoin tumbled to as low as $67,500, and Ethereum neared the $3,500 mark.
The fluctuation in the burn rate might have been caused by someone moving to liquidate their position during times of market uncertainty and increased volatility. Despite the increased burn efforts and advancements in the layer-2 scaling solution, Shibarium, the price of SHIB continues to struggle.