Benzinga - Shiba Inu (CRYPTO: SHIB), the meme cryptocurrency proclaimed as the ‘Dogecoin (CRYPTO: DOGE) Killer,' saw a drastic decline in its burn rate in the last 24 hours, slowing down the rate at which tokens are pushed out of circulation.
What happened: In an X post on Tuesday, Shiba Inu's official burn tracker, Shibburn reported the burning of 12.47 million coins in the 24-hour timeframe, marking a drastic 84% drop.
HOURLY SHIB UPDATE$SHIB Price: $0.00002366 (1hr -0.08% ▼ | 24hr -4.78% ▼ )Market Cap: $13,925,352,580 (-4.91% ▼)
Total Supply: 589,273,754,870,776
TOKENS BURNT
Past 24Hrs: 12,473,704 (-84.72% ▼)
Past 7 Days: 132,749,094 (28.27% ▲)
— Shibburn (@shibburn) May 7, 2024
The decline reversed the upward trend of the previous seven days when more than 132 million tokens were burned at an impressive weekly growth rate of 28.27%.
A big factor behind the burn rate dip was low activity on the project's layer-2 blockchain, Shibarium. The number of transactions on the network plunged following an exponential increase in mid-April, according to Shibarium Explorer.
Even the much-publicized hard fork failed to jack up transaction numbers.
Why it matters: Coin burning has become one of the most keenly-watched events in the cryptocurrency space. Most projects look for ways to remove tokens from circulation to apply deflationary pressure to the asset.
As far as SHIB is concerned, a small portion of the fees is burned every time a transaction is made on the network. Shibarium, with its growing popularity and utility, is a vital cog in SHIB's deflationary ambitions.
Price action: SHIB was trading at $0.00002381 at the time of publication, falling nearly 5% in the last 24 hours, according to data from Benzinga Pro. Trading volume jumped 70% to $602 million.
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