Shiba Inu records 700% surge in burn rate amid high trading activity

Among the meme coins, Shiba Inu (SHIB) is one of the most popular ones. With a market cap of $3.67 billion, it is the 30^th largest cryptocurrency.

In simple words, a meme coin is a cryptocurrency inspired by internet culture, jokes, or viral trends. Unlike Bitcoin (BTC) or Ethereum (ETH), which were designed to solve major financial or technical problems, meme coins usually launch with little to no utility.

Meme coins are not trying to reinvent money; they’re often just trying to go viral.

Related: What are meme coins? Explained

Though its price has declined by around 10% this year as part of the broader crypto slump, it has registered a sudden surge in token burn over the last 24 hours.

In crypto parlance, "burning" a token means permanently removing it from circulation by sending it to an unrecoverable address. It is a common deflationary practice which is useful in boosting scarcity so that the token doesn't get devalued due to oversupply.

As per Shibburn, Shiba Inu recorded a surge of more than 700% in its burn rate over the last 24 hours.

More than 23.62 million SHIB tokens worth $141 have been burnt over the last 24 hours. The figure jumps to 232.81 tokens worth $1,389 if we look at the last 30 days.

So far, the Shiba Inu ecosystem has burnt 410.83 trillion tokens. It means 41.08% of its initial supply of 1 quadrillion tokens has been wiped out so far.

Long SHIB positions worth $265.46 have been liquidated over the last 24 hours, compared to $3,400 in short positions. It means people are optimistic that SHIB's price will rise.

SHIB was trading at $0.0₅625 at the time of writing. The total market cap of meme coins stood at $37.4 billion at press time.

Related: Shiba Inu memecoin dismisses rumors of collapse after takeover