After a week of price declines across the crypto market, altcoins like Shiba Inu (SHIB) are working toward reversing this trend. Shiba Inu is now focusing on its daily burn rate, a deflationary mechanism designed to reduce the circulating supply. The SHIB burn rate surged by 404.31% today, signaling a potential shift in momentum.

Shibarium Burn Portal’s Impact on SHIB Ecosystem

In the last 24 hours, a total of 14,217,643 SHIB tokens were burned, permanently removing them from circulation. Several wallets participated in the process, with the largest contributor being the wallet “0x463…b9758,” which burned more than 7.2 million SHIB alone. 

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The burn rate has steadily increased since the launch of ShibTorch, or the Shibarium burn portal. Although it enables automatic on-chain burns during transactions, activity in the ecosystem remains low.

However, in the last seven days, Shibburn data revealed that 312,693,562 SHIB tokens have been sent to dead wallets. Though each daily burn may involve small numbers, the consistent burning of tokens is contributing to the overall reduction of SHIB’s supply.

Deflationary Strategy to Boost SHIB’s Value

Despite small daily burns, consistent token burning is reducing SHIB’s supply, aiming to drive up its value. In addition to burning tokens, Shiba Inu’s development team has bigger plans for its future growth. 

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One key initiative is the transition to a decentralized autonomous organization (DAO), which will give the SHIB community a direct role in the platform’s governance. The development team also introduced a toolkit designed to support developers in building decentralized applications (dApps) on the SHIB network. 

Though not yet live, this infrastructure could boost the ecosystem’s utility, increase token demand, and ultimately help drive future price growth for SHIB.