Over 42 Million Shiba Inu SHIB/USD Tokens Were Pulled From Circulation Sunday

Over 42 million Shiba Inu SHIB/USD tokens were pulled out of circulation Sunday, putting additional deflationary pressure on the popular dog-themed meme coin.

Shiba Inu (CRYPTO: SHIB) tokens worth over $42 million were burned on Sunday, putting additional deflationary pressure on the popular dog-themed meme coin.

What Happened: The burn rate shot up by 1866% in the last 24 hours, resulting in the burning of 42,122,186 SHIB, according to the coin’s official burn tracker, Shibburn.

In the last week, over 137 million SHIB were burned, reflecting an increase of 13.78%.

Coin burning involves sending a cryptocurrency to an unusable wallet address to remove it from circulation. This is done to create scarcity and boost its demand and market value over time.

As of press time, about 410.748 trillion SHIB had been burned, with the circulating supply at 584.485 trillion.

Interestingly, transactions on Shiba Inu’s Layer-2 blockchain, Shibarium—a major contributor to the burn activity—sharply decreased over the week, as indicated by Shibariumscan.

Shibarium is a blockchain designed to process Shiba Inu transactions more efficiently and quickly. It’s also designed to reduce gas fees, which are small fees paid to miners to validate transactions.

Shibarium Can Now Burn 500M SHIB Per Day

The burning activity on Shibarium was largely driven by the blockchain's gas fee burn mechanism. The average gas fee on Shibarium over the last 24 hours was 0.0003555 ETH, as per data from DeFI Llama.

At press time, ETH traded at $1888.8, which translates to about $0.3555 SHIB at the current SHIB price of $0.000187.

With an average of 1.57 million Shibarium transactions taking place every day, the blockchain was burning around 500 million SHIB per day in gas fees alone.

This activity comes amid reports that Samsung (KS:005930) is investing in Shibarium projects through its investment arm, Harbin Ventures.