The Shiba Inu (SHIB) ecosystem witnessed multiple positive developments throughout the past week. Most notably, the burn rate of SHIB tokens spiked towards the end of last week. This positive trend seen in the SHIB burning rate continued in the last 24 hours as well. Despite the positive developments, altcoins within the ecosystem kicked off the week with 24-hour losses. Nevertheless, the SHIB community still has a lot to look forward to this August.
Community Burns SHIB at an Impressive Rate
A tweet from the Shibburn tracking platform published over the weekend indicates that the SHIB army has made a significant move by transferring nearly 30 million SHIB meme coins to unspendable wallets towards the end of last week. Alongside this positive development, the SHIB community witnessed a major Shiba Inu token secure a new listing.
Furthermore, Shibburn reported a remarkable 21.8% increase in the burn rate of SHIB tokens. Between last week Friday and Saturday a staggering total of 28,865,778 meme coins were sent to "inferno" wallets, where they are now locked away forever.
This surge in the SHIB burn rate at the end of last week marks a 7-day period of positive performance, as the burn rate frequently soared above zero and spent minimal time in the red zone. This upward trend signals a growing appetite among SHIB holders to remove tokens from circulation, which could potentially lead to increased scarcity and value in the future.
The burning of tokens is not a new concept within the cryptocurrency space. It is an intentional act by token holders to send their coins to wallets that are rendered unspendable, effectively reducing the total supply in circulation. This mechanism can have various implications on the token's value and overall ecosystem.
By removing a significant portion of SHIB from circulation, the SHIB army demonstrates a collective commitment to shaping the token's long-term value proposition. Token burns can also enhance the project's credibility and attractiveness to potential investors, as it showcases the community's dedication to tokenomics and responsible supply management.
Meanwhile, the official SHIB account tweeted this past Friday that Doge Killer (LEASH) has been listed on the StealthEX exchange, which is a custody-free platform based in the Cayman Islands.
These recent developments within the SHIB ecosystem demonstrate the vibrant and dynamic nature of the cryptocurrency landscape. As the SHIB army continues to burn tokens and secure new listings, the broader cryptocurrency community will undoubtedly keep a close eye on the token's performance and its potential impact on the market.
The Positive Burn Rate Momentum Continues
The impressive burn rate for SHIB continued over the past 24 hours as well, with metrics reaching an unusually high level compared to previous records. According to data from Shibburn, the SHIB burn rate soared as high as 170% in the past day, leading to the transfer of over 98 million tokens to dead wallets.
Additionally, the upcoming launch of the Shibarium Layer 2 protocol is expected to further amplify the rate of SHIB token burning. The lead developer in the Shiba Inu ecosystem, Shytoshi Kusama, has confirmed that the Shibarium launch is scheduled for the middle of this month, and it will be unveiled at the upcoming Blockchain Futurist Conference.
The introduction of Shibarium is anticipated to spur transaction activities within the broader Shiba Inu ecosystem. As more transactions occur, a portion of the transaction costs will be paid in SHIB tokens, which will subsequently be sent to dead wallets. This mechanism is designed to make the Shiba Inu network more efficient, scalable, and cost-effective, while also contributing to reducing the circulating supply of SHIB tokens.
The combination of the intensified token burning from increased network activity and the launch of Shibarium could create a positive feedback loop for the SHIB ecosystem. A reduction in token supply, coupled with growing utility and adoption, may enhance the attractiveness of SHIB to both investors and users.
Shib Can Now Be Used as Collateral for Binance Loans
In related news, Binance, the world's largest cryptocurrency exchange platform by daily trading volume, recently announced its support for SHIB as a collateral asset for its flexible loan program. This move comes as Binance continues to expand its range of supported digital assets, including several other altcoins.
The flexible loan feature offered by Binance allows users to take out loans collateralized by cryptocurrencies without committing to a specific loan term. This flexibility provides users with more options and freedom in managing their loans, making it an attractive option for those seeking liquidity while holding their cryptocurrency assets.
Alongside SHIB, other digital assets included in the loan program as supported collateral are Enjin Coin (ENJ), a blockchain-based gaming platform, Holo (HOT), a decentralized marketplace, and Theta Network (THETA), a video-focused blockchain.
The addition of SHIB as a collateral asset on Binance may provide SHIB holders with an alternative way to access funds without needing to sell their tokens. This can be particularly useful during periods of high market volatility, as users can utilize the flexible loan feature to access liquidity while still holding onto their SHIB tokens.
In other recent developments, the Shiba Inu development team revealed plans to incorporate blockchain-based digital identities into its ecosystem. The addition of Self-Sovereign Identity (SSI) to all Shiba Inu projects aims to create blockchain-based identities similar to digital passports. This move could potentially enhance security and privacy within the Shiba Inu ecosystem and provide users with greater control over their personal information.
Moreover, the Shiba Inu team released the beta version of its cross-chain bridge for public testing. The cross-chain bridge allows seamless token transfers between Shibarium, the ecosystem's upcoming layer-2 scaling solution, and the leading smart contract platform Ethereum (ETH). This integration could open up new possibilities for users and increase the interoperability of the Shiba Inu ecosystem.
SHIB Ecosystem Overview
The increase in burn rate for SHIB, as well as the collection of positive developments over the past week, has not been able to positively impact the price of SHIB yet. At press time, CoinMarketCap indicated that the meme coin experienced a price drop of 5.83% over the past 24 hours. Consequently, the cryptocurrency was changing hands at $0.000009139. Despite the negative daily performance, however, SHIB’s price was still up more than 7% for the week.
BONE and LEASH experienced similar fates during the past day of trading. In the last 24 hours, BONE saw its price drop 2.25%, while LEASH posted a loss of 3.85%. As a result, BONE’s price stood at $1.63 and LEASH was trading at $512.34. Similar to SHIB, both of the altcoins’ weekly performances remained firmly in the green zone. At press time, BONE and LEASH were each up more than 13% for the week.
