Shiba Inu Burns 143.92 Million Tokens, Limited Price Impact

The Shiba Inu (SHIB) ecosystem has burned approximately 143.92 million SHIB tokens over the past week. Although the burn amount is significant, its proportion relative to the total supply is small, resulting in a limited impact on price. Contributor Mazrael stated that the burn mechanism based on transaction fees in Shibarium continues to operate despite a slowdown in network activity. In the last 24 hours, about 4.75 million SHIB were burned, bringing the total burned amount to approximately 3.45 billion SHIB. The burn amount over the past week is lower compared to the daily burn of about 1.3 billion SHIB at the end of July. Shibarium is a layer 2 network built on Ethereum (ETH) to enhance transaction costs and processing speeds, with the network's currency symbol being BONE. ShibTorch utilizes a portion of Shibarium's transaction fees to burn SHIB, with fees converted to SHIB after being moved to BONE. According to CoinGecko, the total supply of Shiba Inu is around 589.496 trillion tokens. While burning hundreds of millions of tokens is significant in number, its proportion to the total supply is small, necessitating scale and sustainability to act as a price variable. Shibarium data is also crucial, as the cumulative transaction count recently decreased from approximately 1.56 billion to 475 million. This decline is attributed not to blockchain transactions being reversed but to an indexing issue with the explorer. The market price did not move solely based on the burn news, and on the 21st, Shiba Inu closed at $0.00000520, reflecting a 5.48% increase from the previous day.