The price of Shiba Inu (SHIB) has staged a moderate rally despite drawbacks in burn rates. As of this writing, SHIB was trading at $0.0000138, surging by 1.54% in the past 24 hours. The trading volume also increased by 28% to $161 million.
Shiba Inu Burn Rate Sees Decline
Meanwhile, the burn rate, one of Shiba Inu’s key metrics, went into the red zone over the past day. Data from the Shibburn tracking platform shows a burn rate decrease of 5.09% over the last 24 hours. With this burn rate, 10,560,253 SHIB tokens were transferred to burn addresses and removed from circulation.
The decline in the Shib burn rate comes after an earlier surge this month. According to our earlier report, SHIB printed an impressive 5803.56% increase when 26,430,838 Shiba Inu tokens were permanently removed from circulation.
Earlier, the SHIB burning process was manual. As such, community members must send their SHIB directly to burn addresses. However, with the launch of the ShibTorch portal, the trends have changed.
Burn Rate and Shibarium Connection
It should be noted that the transaction activity on Shiba Inu’s Layer-2 solution, Shibarium, directly affects the SHIB burn rate. This is because a percentage of gas fees paid with BONE tokens are reserved and automatically converted into Shiba Inu to be burned automatically.
Between the end of 2023 and the beginning of 2024, the Shiba Inu team manually converted a large quantity of BONE to SHIB and burned them.Â
Meanwhile, Shibarium continues to get increased attention among crypto enthusiasts. Earlier in the month, the platform witnessed a remarkable surge in activity, recording a 1,733% increase in new accounts in just 24 hours. With the rise in new users, attention now shifts to the overall influence on the Shiba Inu ecosystem.
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