The much-anticipated debut of #Shibarium has resulted in a significant increase in the #SHIB burn rate. Despite the Layer 2 blockchain experiencing issues on the day of its introduction last week and still being in private mode, the burn rate has increased recently. Yet although it could indicate a resurgence of interest among meme coin investors, something else appears to be fueling this increased burn rate.
One Day SHIB #Burn Rate Increases By 1,108%
Shibburn, a website that tracks Shiba Inu burns, reports that the burn rate has significantly increased over the past 24 hours compared to the day before. Around 1.046 billion tokens have been burnt in total, which equates to a rise of 1,108.78% throughout this period. #Shibainu
While looking at the burn addresses that Shibburn has released, the address 0x4be2 keeps coming up. This address is indeed the contract address for the MARSWAP (MSWAP) coin, according to a simple search on the blockchain.
This coin appears to allocate a percentage of transaction fees to SHIB burn, and as it becomes more popular, more SHIB tokens are being burnt. Around 40% of the burned tokens thus far are attributed to Marswap. Yet, the greatest burn event in the previous day included just one address, 0xcf6d, which is the ShibaSwap LP Token (SSLP) contract address.
What is the reaction of the token price?
The price of the meme currency has not reacted as favourably as anticipated despite the noticeable increase in the SHIB burn rate. The token price looks to be maintaining the negative trend seen in the overall cryptocurrency market mood.
Although if SHIB's price has only increased by a negligible 0.16% during the past hour as of the time of this writing, it is still declining by 1.48% on a daily basis. Its enormous loss of 21.94% on the weekly chart is even more worrisome. It seems improbable that SHIB would break away from the market and surge given current trend. Instead, a rebound will come after a spike in Bitcoin.
The Shibarium relaunch, on the other hand, can be the occasion that starts a recovery. Lead developer Shytoshi Kusama speculates that the layer 2 network may be preparing to debut again soon.