Shiba Inu burn rate soars despite Shibarium concerns

Shiba Inu (SHIB) has witnessed an impressive increase in token burns in the past 24 hours, with over 1 billion tokens incinerated.

This heightened burn rate comes despite the mounting concerns surrounding the Shibarium mainnet launch.

Data from Shibburn, the community-driven Shiba Inu burn tracker, indicates that precisely 1.029 billion SHIB worth $8,200 has been incinerated over the past day. This figure represents a massive 1,029.29% increase from the amount burned the previous day.

Notably, the recent elevated burn rate was triggered by transactions involving millions of Shiba Inu tokens over the past 24 hours. These transactions were carried out by projects such as MARSWAP, OxShibarium AI, and Koyo Token.

The largest among these transactions involved 418.7 million SHIB tokens incinerated by OxShibarium yesterday at 6:36 PM (UTC). This transaction occurred a few minutes after Koyo Token burned 331 million Shiba Inu tokens at 6:17 PM (UTC). 

This transaction was not Koyo Token’s first substantial SHIB burn, as the project had previously incinerated billions of tokens in the past. The recent burn exercise comes shortly after the project observed a hiatus.

Interestingly, MARSWAP, a DeFi project built atop the Shibarium network, joined the burning campaign with a series of transactions, contributing to the increased burn rate. The project claims to have burned 4.5 billion SHIB tokens since May.

SHIB is down by 2.5% in the past 24 hours and trading at $0.0000079 at the time of writing. The asset’s 24-hour trading volume has risen by 20%, reaching $179 million.

Concerns surrounding Shibarium

These notable burn transactions come amid concerns around Shibarium’s mainnet launch. The layer-2 network encountered issues following its debut, resulting in over $1.7 million worth of investors’ ETH tokens stuck on its bridge.

Moreover, the Shibarium development team, led by pseudonymous developer Shytoshi Kusama, has addressed the issues. Kusama stressed that the issues emanated from an unanticipated influx of Shibarium users, not Shibarium itself.

The development team promised to work on scaling the system to accommodate the high demand. 
They have continued to update the public on progress, with the latest update coming on Aug. 22. In the blog post, Kusama highlighted the introduction of new validators tomorrow.