Shiba Inu's (CRYPTO: SHIB) burn rate shot up exponentially in the last 24 hours amid a sharp increase in the transactions on the layer-1 blockchain, Shibarium.
What Happened: Around 7.7 million SHIB tokens were kicked out of circulation, according to data from Shibburn, marking an astounding 13458.99% jump.
Coin burning happens when a cryptocurrency token is intentionally sent to an unusable wallet address to remove it from circulation. This is done to create scarcity and boost its demand and market value.
As of this writing, about 410.72 trillion SHIBs have been burned.
Why It Matters: The jump in burn rate comes as new transactions on Shibarium blockchain spiked 45% in the last 24 hours. Increased transactions typically lead to a higher burn rate for the token.
The increase in on-chain activity was also supported by a 28% increase in daily active addresses in the last 24 hours, as reported by IntoTheBlock.
That said, large transactions volume plunged 52%, while holdings of long-term investors dropped by 0.02%, indicating selling pressure.
Price Action: At the time of writing, SHIB was exchanging hands at $0.0000226, falling 3.15% in the last 24 hours, according to data from Benzinga Pro. The second-largest memecoin was trading 7% lower over the last week.
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