'Dogecoin Killer' Shiba Inu Gains Momentum After Burn Rate Shoots 1393%

The world's second-largest memecoin, Shiba Inu SHIB/USD, witnessed a massive spike in its burn rate in the last 24 hours, contributing in part to the cryptocurrency's price increase. 

What Happened: About 301.68 million SHIB tokens were kicked out of circulation, according to the official burn tracker, Shibburn, representing a jaw-dropping 1393% spike. 

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 market value if demand stays strong.

More than 918 million SHIBs were burned in June across 237 transactions, marking a 148% spike from the previous month. As of this writing, nearly 410.72 trillion tokens have been burned. 

See Also: ‘Rich Dad Poor Dad’ Author Robert Kiyosaki Questions Bitcoin ETFs’ Authenticity: ‘ETFs Are Fake Gold, Silver, Or Bitcoin’

Why It Matters: The increase in burn rate coincides with a 2x jump in new transactions on the Shibarium blockchain in the last 24 hours. 

Recall that all transactions on the Layer 2 network result in the burning of SHIB tokens. 

The above data was supported by findings from on-chain analytics firm IntoTheBlock, which revealed an 181% jump in large transaction volume. Moreover, SHIB's daily active addresses rose by 65% in the last 24 hours. 

Price Action: The resulting deflationary pressure helped propel the memecoin's price. At the time of writing, SHIB was exchanging hands at $0.00001739, marking a 4.13% increase in the last 24 hours, according to data from Benzinga Pro.

Read Next: Solana Soars 16% Over 7 Days, Outpacing Bitcoin And Ethereum Over ETF Application Momentum — More Applications To Follow?