Shiba Inu has witnessed a dramatic spike in its burn rate over the past 24 hours, according to data from Shiba Inu burn tracker Shibburn.com. The total number of tokens sent to burn addresses surged by over 1,800% during this period, marking one of the most notable increases in recent weeks.
The spike in SHIB burns is coming as the Shiba Inu price is attempting to stabilize above the $0.000013 price level. However, despite the short-term surge in token burning, the scale of the burn is insignificant when placed beside the meme coin’s massive total supply.
Shiba Inu Burn Activity Spikes Suddenly
Data from Shiba Inu burn tracker Shibburn shows that 4,578,466 SHIB tokens were sent to burn addresses in the past 24 hours, which represents a 1869% increase from the previous 24-hour timeframe. Interestingly, the majority of the tokens burned in the latest cycle came from just two large transactions.
The first involved the movement of 3,295,542 SHIB tokens to a designated burn wallet known as CA. Two hours later, a second transaction saw another 1,173,708 tokens sent into a separate address labeled BA-2.
On-chain data links both transactions to a wallet identified as “0xa9d1,” which is tied to the Coinbase10 label. This means that the burns may have been executed by a user on the Coinbase crypto exchange. Combined, the two burns amounted to 4,469,520 SHIB tokens and were primarily responsible for the 1,869% jump in the daily burn rate.
Shiba Inu’s Large Supply Still Far Ahead
Although the number of SHIB burned in the past 24 hours is a lot, it is actually small compared to the amount of SHIB burned during periods of high activity surrounding Shiba Inu. Also, it barely makes a dent in the circulating supply of Shiba Inu.
The numbers show a 1,800% spike in 24 hours, but the impact of the burn is somewhat negligible in the grand scheme of SHIB’s supply structure. Shiba Inu was created with a total supply of 999.9 trillion SHIB tokens. Of this total supply, 410.7 trillion SHIB has been burned and removed from circulation, meaning there are still 589.9 trillion SHIB in total supply.
Out of this total supply, only 4.7 trillion SHIB tokens are currently staked, meaning that there are presently about 584.5 trillion SHIB tokens in circulation. When placed next to such a massive figure, the 4.58 million burned in the past 24 hours is barely noticeable both numerically and in terms of price effect. For SHIB’s supply to reduce meaningfully enough to influence price over time, far larger and more sustained burns would need to occur.
At the time of writing, Shiba Inu is trading at $0.00001272, down by 4.9% in the past 24 hours.
Featured image from Getty Images, chart from Tradingview.com
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