Shiba Inu has reported a significant increase in its burn rate over the last day as the Shiba Inu ecosystem begins to note increased network usage.
The surge in the network activity comes amid growing optimism and renewed interest in the leading meme token after it delivered a strong price gain in the last month.
Shiba Inu supply shrinks by 12,066,401 $SHIB
On Saturday, May 2, blockchain tracking platform Shibburn provided data that shows that a total of 12,066,401 $SHIB has been sent to irretrievable addresses over the last 24 hours.
While this activity permanently removed the specified amount of tokens from circulation, it has sparked a sharp increase in the Shiba Inu burn rate, which reflects a massive 812% surge in the metric over the last day.
Per $SHIB‘s trading price at the time of the move, the total amount of $SHIB tokens burnt during the period were worth about $72.
While this is a regular move observed within the Shiba Inu ecosystem, it is no news that the major aim of the frequent burn activity is to keep $SHIB‘s distribution in check while reducing the number of tokens in circulation to drive scarcity against demand.
In situations when supply is limited and the demand for the asset keeps rising, the asset is poised for potential upside moves, as expected in the case of $SHIB.
$SHIB hovers around $0.000006302
Although $SHIB has continued to flash mixed price signals, the sharp increase in its burn metric after multiple days of staying low has sparked a bit of hope among investors.
Market participants are optimistic for a potential price flip as Shiba Inu is currently trading negatively, recording a decrease of 1.24% over the last 24 hours. The asset is trading at $0.000006302 at the time of writing.
