Shiba Inu’s Coin, $SHIB is still standing as the number two biggest meme coin in the crypto market, trailing below $DOGE. 

The surge of interest came from traders and investors who are excited to see the project being developed from being a meme project to now having its blockchain with real products. 

Aside from its development, the burn mechanism of $SHIB is also another aspect that created interest among traders. 

However, the burn rate of this coin has been fluctuating recently, with yesterday’s rate declining around 99% in one day. 

Shiba Inu’s Burn Rate

According to the Twitter Account named Shibburn, which gives real-time updates around $SHIB’s burn rate and events, the burn rate of this coin has dropped around 99.5% in the last 24 Hours. 

$SHIB Burn Rate Update / Source: Twitter

This was a shock to the community as the burn rate was gradually increasing over the past couple of days, reaching around a 500% daily increase in burn rate. 

There are many factors affecting this, one of which is the current condition of the market which is currently in a stagnant negative state, due to external factors outside of the crypto market. 

When times are hard, $SHIB whales tend to burn fewer coins, which is why currently the burn rate is slowing down. 

However, this week alone, $SHIB’s burn rate has managed to increase by more than 200% compared to last week according to data from Shibburn, an analytical site on $SHIB. 

The total $SHIB burn currently stands at around 410.72 Trillion $SHIB, which is almost half of the total supply of this coin. 

Burn is an important mechanism for a meme coin to have, especially if the token has a high amount of total supply. 

This is because with the burn mechanism, there will be fewer coins circulating in the market and it will be easier for the price to go up, due to less market capitalization needed to reach a certain price. 

For example, let's say that hypothetically, the current supply of $SHIB stands at 500 Trillion. This means that to reach $1, $SHIB has to have a market capitalization of $500 Trillion. 

However, if the burn rate successfully brought $SHIB’s total supply to 50 Million, then it would only take $SHIB $50 Million in market capitalization for it to reach the $1 price mark. 

This is why the burn mechanism attracts traders, as it creates hope of future price gain, giving more than %1000 of profit for current holders. 

Shibarium Has Been Active 

Looking at the Shibarium Blockchain itself, which is the newly developed blockchain by the Shiba Inu team, the blockchain has been active, processing more and more transactions, especially for Ethereum. 

Shibarium itself is a layer two blockchain that can stand alone as its blockchain as well as help Ethereum process transactions, which is why it has been able to reach a high transaction count in a short time. 

Shibarium Explorer / Source: Shibariumscan

Looking at the blockchain explorer, it can be seen that there are currently more than 415 Million transactions that have been processed on the blockchain. 

This is a huge accomplishment considering how new the blockchain is but has been able to beat most blockchain transaction volumes that have been active longer. 

There are also more than 1.7 Million wallet addresses currently active in the blockchain which translates into active users. 

The number has been increasing with an all-time high of 209,992 new wallets in just two days, giving signs that interest around $SHIB is still huge. 

The transaction fee for the blockchain itself currently stands at less than $0.01 which is a huge selling point considering most layer two blockchains are still trying to achieve that level. 

Overall, it can be seen that $SHIB still has many things in it that might draw more investors toward its coin. 

The decreasing burn rate might just be a temporary condition as the project is still going strong, keeping its place in the meme coin sector. 

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