Rise In Token Burn Rate Led To SHIB Rising By 9%

The 12th-largest cryptocurrency, SHIB, recorded a weekly high as it rose by 9% as of August 25, 2022. Meanwhile, the wider crypto market is recovering following last week’s sell-off.

The popular meme-inspired currency, SHIB, has a market cap of $8.01 billion. At the time of writing, the cryptocurrency was trading at $0.00001332, an 8.47% drop in the past 24 hours.

What is the Reason Behind the Hike?

The rise in the price of SHIB is said to be because of two reasons: the increase in the token’s burn rate earlier this week and the excitement around the layer-2 blockchain launched by Shiba Inu.

The Shibburn data from August 25 has revealed that approx. 110 million SHIB tokens are burned while 40% of the SHIB supply is burned to date.

While the data from Dune Analytics shows that the Shibaswap, the popular DEX launched by the Shiba Team has witnessed its user base multiplied.

Shibaswap interacted with 145,661 users, creating a new all-time high for the metric on August 25. The trading volumes too increased by a whopping 60% in the last 24 hours, as of August 25.

However, the CoinMarketCap data reveals that despite an upward movement yesterday in the price of SHIB, it continues to be down by over 80% from its ATH recorded in October 2021.

Moreover, the Coinglass data shows more than $1.2 million in SHIB trades were liquidated mainly from short positions in the past 24 hours. And according to Etherscan, the full addresses holding SHIB rose by 0.023% reaching approx. 1.211 million on August 25.

Following its rival, Dogecoin, the leading meme-coin too, jumped by 2.4% on August 22, 2022. But, at the time of writing, the 10th-largest cryptocurrency was trading at $0.0684, a 2.61% drop in the past 24 hours, according to data from CoinMarketCap. DOGE has a market cap of $9.3 billion.