Shiba Inu Burn Rate Spikes 1,400%, Reducing Circulating Supply

According to CryptoPotato, Shiba Inu's burn rate has spiked by 1,400% in the past 24 hours, resulting in over 60 million tokens being removed from circulation. This development coincides with the recent price increase of SHIB amid a general upswing in the cryptocurrency market. Since the beginning of the year, the number of destroyed assets has surpassed the 9 billion mark. The burn mechanism aims to reduce the massive circulating supply of SHIB, making it scarcer and potentially more valuable in the future. Over 41% of the asset's maximum supply has already been burned, according to Shibburn. Every time a transaction is made on the network, a certain percentage of the transaction fee is transferred to a null address. The process involves both manual and automated burns. Last week, the team behind Shiba Inu and the layer-2 blockchain solution Shibarium introduced a transformative token burning mechanism that aims to automate the entire system. The latest burn rate spike coincides with SHIB's price rally, which has climbed by 2.5% in the last 24 hours and 7% on a weekly scale. The token's uptrend could also be attributed to the overall bullish condition of the market, with most cryptocurrencies charting substantial gains. Bitcoin (BTC) has soared to a three-week high of almost $44,000, Solana (SOL) reclaimed the $100 mark, and Cardano's ADA is up 7%.