Shiba Inu Burn Rate Accelerates 340%; Price to Follow Suit?

• SHIB community torches 11M SHIB tokens, boosting the daily burn rate by 340%.
• In August 2024, Shibarium devs introduced the SHIB auto-burn mechanism.
• SHIB price continues to trade in a narrow sideways channel with slight gains.

Shiba Inu (SHIB) continues to ride the market recovery wave this week. Residing above the $0.000013 support level, Shib’s current consolidation area provides some stability against the challenges of a persuasive bear market.

One Massive SHIB Burn Transfer Stands Out

To pick up the bullish wave , Shiba Inu’s loyal and vibrant community is looking for ways to burn more, as each transaction is recorded on the daily burn tracker. On Friday, the SHIB Army managed to set ablaze 11,080,178 tokens in six transactions.

This is a substantial spark in daily burns, which have risen 340% over the past 24 hours. Digging deeper into the on-chain data, one single transfer to a null wallet stands out. 

A colossal transfer of 10,007,448 SHIB coins was sent to the incinerator 32 minutes past midnight on September 13. This greatly contrasts Thursday’s burns, where only 2,516,677 tokens were set aflame.

SHIB Price Ready for Auto Burn Appreciation?

As Shiba Inu’s Layer-2 chain Shibarium gets ready to onboard the game-changing K9 Finance DAO app, the community expects a rise in network activity. The BONE Crusher dApp is slated for a September 18 launch on Shibarium, potentially boosting the chain’s total value locked (TVL) and usage.

This is crucial for further burns, as the collected network fees are swapped for SHIB burns in the new automatic burning system. This innovation works within a consensus of 70% of the accumulated fees going toward automatic burns. The remaining 30% of the garnered network fees are used for development and Shibarium growth initiatives.

SHIB is changing hands at $0.0000137, according to the independent price aggregator CoinGecko. Shiba Inu’s price kept trading in a narrow sideways channel for the past week, bouncing from the seven-day lows of $0.0000125 on September 7 to the weekly peak of $0.00001363.

On the Flipside

• With approximately 589T Shiba Inu coins left in circulation, the community estimated that billions of SHIB should be burned daily to sustainably affect the SHIB price.

Why This Matters

Reducing the crypto currency’s supply by burning is one of the most effective ways to create scarcity and maintain a coin’s deflationary model.

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