SHIB’s burn engine crashes 100% in a day: with zero tokens torched, what’s really killing the deflation?
The mainstream meme currency Shiba Inu coin (SHIB) saw no action in the burning front for the past 24 hours, causing an abnormality in the burning records. Typically, SHIB Burn tracker reports a daily figure at least in the millions, nailing billions on a good day. With Shiba Inu’s remaining supply at 585.420 trillion, every transaction to the bottomless pit counts.
Two Sides Of The 100% SHIB Burn Rate Drop
The initial batch of Shiba Inu tokens set ablaze were done by Ethereum’s (ETH) founder Vitalik Buterin back in 2021, when he received an allocation of Shiba Inu coins from Shytoshi Kusama. SHIB’s mysterious leader embraced auto-burns on Shibarium L2, often initiating community burning initiatives.
While many SHIB Army members burn tokens unprovoked on a daily basis, this was not the case on Monday.
Simultaneously, Shiba Inu’s price movement didn’t print any drastic swings on Monday, consolidating since last weekend.
At $0.00000619, the canine meme coin is trading above the lower demand zone, but the true challenge lies at the $0.0000066721 resistance level, something SHIB hasn’t reclaimed in two weeks as major altcoins lack buying interest.
On top of that, Shiba Inu’s (SHIB) native Shibarium chain’s plunging trading activity is another factor that pushed Shiba Inu’s daily burn rate to such drastic figures. By Shibarium’s mechanism part of the collected Bone ShibaSwap (BONE) fees are swapped for Shiba Inu coin burns, hitting quite a few milestones this way in 2024 with single-handed multi-billion burns.
Shibarium’s TVL Hike Can’t Ignite The Bonfire
DeFiLlama’s stats portray another on-chain abnormality. Shibarium’s total value locked (TVL) skyrocketed by 17.83% since yesterday to $1.07 million. However, Shiba Inu’s signature Layer-2 chain collected just $8 in fees, making it impossible to swap any of the garnered BONE crypto fees to SHIB for burns.
Hitting a $11.22 million TVL record back in 2024, Shibarium is likely to get another liquidity boost once the Layer-3 chain drops. Announced a few years ago, the new Shiba Inu (SHIB) chain collected $13 million in a funding round, sponsored by the likes of Animoca Brands & Polygon Labs. The chain introduces Fully Homomorphic Encryption (FHE) as a next-gen security tool.
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