According to CryptoPotato, Shiba Inu, the second-largest memecoin by market capitalization, has experienced a significant increase in its burn rate, resulting in a reduction of its circulating supply. Over the past 24 hours, the burn rate spiked by approximately 400%, with more than 16.5 million tokens removed from circulation. Since January 1, over 9 billion assets have been destroyed, representing over 10% of the total amount burned throughout 2023. The burning mechanism aims to reduce the massive SHIB supply, potentially making it scarcer and more valuable over time.
The price of Shiba Inu has shown an uptrend, with a 5% increase on a weekly basis. This rise could be attributed to the overall market resurgence following the approval of multiple spot Bitcoin ETFs in the United States. However, in the past 24 hours, the sector experienced a correction, with SHIB's value dropping by 2.5% according to CoinGecko's data.
Another factor that may have contributed to SHIB's recent upswing is the development of the layer-2 blockchain solution Shibarium. Launched in August last year, Shibarium aims to elevate the meme coin above its rivals by reducing transaction fees and improving speed. Total transactions on Shibarium have surpassed the 250 million mark, while wallet addresses have exceeded 1.3 million.
