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According to the recent update on the Shibburn wallet tracker, the Shiba Inu army has again managed to raise the burn rate this week after removing a large number of SHIB meme coins from the circulating supply.
In the meantime, the Shiba Inu price continues to increase, and Layer-2 network Shibarium has managed to smash another important utility record this week.
Millions of SHIB go up in flames, price surges
The Shibburn tracker shows that within the last 24 hours, the burn rate of Shiba Inu has demonstrated 456% growth as 11,134,759 SHIB have been extracted from the circulating supply in total for good, and they are now locked in dead-end wallets.
There have been five transactions overall thus far, with the two largest ones carrying 7,157,006 SHIB and 1,227,747 SHIB to “inferno” wallets.
Several times this week, members of the SHIB community have mentioned in the comments under Shibburn X posts that the burns that are taking place so far are very small and can hardly have any significant effect on the meme coin’s price. Over the past 48 hours, the SHIB price has increased by 6.23%, now trading at $0.00000822, and this increase is hardly due to yesterday’s burns.
Here’s when large effect on SHIB price expected by Shytoshi Kusama
Indeed, almost half of the initial SHIB supply of one quadrillion has been removed from circulation already (the majority of it burned by Ethereum cofounder Vitalik Buterin in 2021), and the price has not been able to burn even another zero yet.
Earlier this fall, the mysterious and enigmatic leader of the Shiba Inu development team, Shytoshi Kusama, stated that he expects burns to take off in large chunks once Shibarium utility surges to all-time highs.
The more projects, devs, builders, etc., that begin to use Shibarium on a daily basis, Kusama and other members of the SHIB team have stated, the faster that major burns will begin to occur. However, many in the SHIB community also believe that only burns are not enough to significantly raise the price of SHIB, and that the demand for coins also has to show a drastic increase.
The mechanism of token burns through Shibarium works in a simple way – by using gas fees. These fees are paid in BONE (the governance token on the ShibaSwap DEX), a portion of these fees is set aside to support the further development of Shibarium, and the other part is set aside for future burns. Once there is a certain amount of BONE set aside, developers convert it into SHIB and send the meme coins to dead blockchain addresses then.
Shibarium smashes new utility record
Shibarium utility keeps rising, showing new records from time to time and thus pleasing the SHIB community. Today, Shibarium shows a rise of daily transactions to a peak of 43,690, according to the Shibariumscan explorer.
Earlier this week, there was a lower rise when Shibarium hit a local high of 34,670 on Nov. 21. However, this network has certainly seen bigger surges of this metric – the nearest one was on Oct. 25, when the reading surged to 62,560.
Overall, this week has been successful for Shibarium as well because the total transaction count finally managed to break above the four million level. Currently, it stands at 4,131,761.
Source: https://u.today/shib-burn-rate-springs-456-price-reacts-by-printing-big-rise