Shiba Inu Burns Elevate 579% Despite Shibarium Activity Drop

Shiba Inu’s mutual community efforts sparked a bullish flame with nearly 10M SHIB tokens put out of circulation.

by . Fact checked by: Ciaran Lawler, Editor: Stefan Trapp
Published:
Shiba Inus being burned in barrels in a torched, volcanic landscape.
Created by Gabor Kovacs from DailyCoin
Google News Follow Button
  • SHIB Army blazed 9.83M SHIB tokens in 12 transfers to burn wallets.
  • Shibarium L2 has witnessed stagnant transaction activity for over a month.
  • Correspondingly, Shibarium’s gas token BONE faces turbulence at $0.60.

The second largest meme currency, Shiba Inu (SHIB), remained relatively stable over the past seven days, as most popular altcoins traded sideways during the period. However, a sudden increase in community burns has piqued the interest of the SHIB Army, as 9,834,217 SHIB blazed in 12 transactions on Monday spiked the daily burn rate by 579%.

Moving 9.83M SHIB to unavailable wallets, these burns are a good prelude to the upcoming automatic SHIB burning system. The highly-anticipated auto-burn system is set to take place within the next Shibarium upgrades, as the developer team announced the testing phase of the Shibarium burn upgrade earlier this year.

Shibarium L2 Activity: Calm Before the Storm?

As the Shiba Inu coin has traded in a consolidation phase for the past week, Shibarium Layer-2 has witnessed a cool-off period with calm trading activity on the network. For instance, Shibarium hit 11.91K transactions yesterday, while the period between May 4 and May 15 saw below 10K transactions for 12 days. The stagnant trading activity is reflected in the price of Shiba Inu’s BONE.

Real-time data from blockchain explorer ShibariumScan.io

Bone ShibaSwap (BONE) has plunged by 17% monthly, coinciding with the drastic transaction activity drop. However, bulls have started digging Shiba Inu’s BONE up with a 4% upswing over the past seven days, putting BONE slightly above the historical support levels of $0.60.

Meanwhile, SHIB is swinging slightly below $0.00002400, trading in phased consolidation since the GameStop-driven meme coin hype faded. The Japanese guard dog-embossed crypto iexchanged hands at $0.00002397, with 589,262,999,996,242 coins still circulating, according to CoinGecko.

On the Flipside

  • Shibarium transaction volume highly depends on new decentralized applications (dApps) on-chain, onboarding new Shibarium users, and bolstering the chain’s liquidity.
  • Previously, activity soared on the MARSWAP DEX launch, while the K9 Finance DAO liquid derivatives staking app, the next major dApp on Shibarium, is yet to go live on-chain in Q3 of 2024.

Why This Matters

Shiba Inu’s community burns have previously resulted in momentous upswings, even though the SHIB burning mechanism aims long-term sustainability.

Check out DailyCoin’s trending crypto stories:

Sponsored

GameStop Mania: Are Roaring Kitty’s Tweets a Hidden Message?
Venezuela Pulls Plug on Crypto Mining to Prevent Grid Overload

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Tags
Author
Tadas Klimasevskis
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.