TL;DR

Shiba Inus burn rate increased by 579% in the past 24 hours, with nearly 10 million tokens destroyed. Other crypto projects also use burning mechanisms to manage their token supply, with recent burns concurring with significant price increases.

The Latest Spike

Shiba Inus burn rate has increased by 579% in the past 24 hours, resulting in almost 10 million assets being destroyed. The burned tokens on a weekly scale equal 57.6 million.

The burning mechanism is a strategic approach to manage SHIBs supply and create potential value appreciation through scarcity. Shiba Inu has a maximum supply of 999,982,363,413,352 tokens, with over 40% already sent to a null address.

The process is rather complicated and involves both automatic and manual burns. Those curious to learn more about it can read our dedicated guide here. Not long ago, the team behind Shiba Inu introduced a transformative token mechanism to automate the entire system.

Meanwhile, Shiba Inus price is slightly down daily but well in the green on a weekly scale. It currently trades at approximately $0.00002401 (a 9% increase compared to the figure observed last Monday). 

SHIB Price, Source: CoinGecko

Shiba Inu Not the Only One Burning

Shiba Inu is not the only crypto project to have adopted a burning mechanism, with Binance Coin (BNB) and Floki Inu (FLOKI) being some evedent examples. 

The team behind BNB conducts quarterly burns, a process that involves buying back and permanently destroying a portion of the asset from the market, funded by a chunk of Binances profits. The ultimate goal is to reduce the total supply to 100 million BNB. The latest such action occurred at the end of April and resulted in 1,944,452.51 tokens being burned.

For its part, the Floki DAO (the decentralized autonomous organization that governs the meme coin Floki Inu) recently decided to destroy over 15 billion assets. The vote was passed with an overwhelming majority of 99.84%.

The initiative coincided with a substantial green wave for the meme coins price. FLOKI is up 15% on a weekly scale and 37% monthly. The assets market capitalization is inching toward the $2 billion mark, making in the fifth-biggest in its realm and the 59th largest cryptocurrency.