In 2023, the well-known memecoin project, Shiba Inu, saw over 76 billion tokens burned (equivalent to over $820,000 at current prices), representing an 8.33% decrease compared to 2022. The month with the most tokens burned was December, when approximately 35 billion assets were destroyed.
Although this may seem like a large amount, it only represents a small fraction of Shiba Inu’s circulating supply, which totals nearly 590 trillion. The purpose of the burning mechanism is to reduce the supply of SHIB, making it scarcer and potentially more valuable over time.
Recently, the price of the asset has been increasing, with a 5% spike in the past 24 hours and a 30% increase over the past month, according to CoinGecko’s data.
Many experts believe that the development of Shiba Inu’s layer-2 blockchain solution, Shibarium, could also contribute to the price appreciation of SHIB.
Shibarium, which launched in the summer of 2023, has reached various milestones recently, including surpassing 200 million total transactions around Christmas. Currently, there have been almost 250 million transactions and just under 2.5 million total blocks on the network.
The goal of Shibarium is to improve the efficiency and scalability of the base layer by handling transactions off the main blockchain. This means that users can enjoy reduced transaction fees and faster processing times.