The SHIB coin has recently seen a significant rise in the rate at which the tokens are being burned, which is a positive step towards decreasing the total amount of tokens in circulation. According to the Shibburn tracker, which tracks the amount of SHIB tokens that have been burned, the burn rate has increased by more than 28,145% within the last 24 hours.

Therefore, this spike led to the burning of 96,634,993 SHIB tokens which means that these tokens will no longer be in circulation and will be sent to the dead wallets. This is in line with the current efforts of the community to reduce the total circulating supply of the token which could lead to future price appreciation.

The increase in the burn rate is in the same period when the price of SHIB has been fluctuating. This week, SHIB had a brief price surge and then returned to $0.00001412. Even though the burn rate has increased the hopes for the price surge, the price of SHIB still depends on several factors.

Introduction of ShibTorch and Its Impact on Burn Rate

The increase in the burn rate of Shiba Inu can be ascribed to the integration of a new automated burn protocol called ShibTorch. This mechanism was put in place after a major enhancement of Shibarium, the Layer 2 protocol built for the Shiba Inu ecosystem. The upgrade process was implemented on 9th of August with the new version of the Bor software (v1.1.2-bone) at the block height 6,206,570.

ShibTorch facilitates burn of SHIB tokens by assigning 70% of the base transaction fees in the network to the burn wallet. The other 30% of the funds are used for network sustenance, enhancement, and expansion.

All the transaction fees that are charged are firstly converted into SHIB and then they are burn. Since its launch, ShibTorch has played a significant role in speeding up the burning of SHIB in circulation, especially with the recent rise in burn rate.

Shiba Inu Ecosystem Expands Beyond Token Burns

However, the Shiba Inu ecosystem is also expanding at a rapid pace with the introduction of new projects. Some of these are Shiba Eternity which is a Shibarium-based Web3 game that is still in its beta phase. This game applies the use of blockchain technology in the management of in-game transactions and assets, thus giving the players an easy and secure experience.

In Shiba Eternity, the competitive-ranked model is adopted and players can have their tournaments in every 15 days. The best 25 players are ranked based on their performances and are therefore allowed to participate in special tournaments which include seasonal events and special rewards.

New changes that have been made of late include; a better tutorial, an improved menu system, and better rewards such as faster leveling up, better quests and welcome gifts. These updates are expected to appeal to players who are migrating from the Web2 version of the game.

Market Reaction and Future Prospects for SHIB

Though the Shiba Inu ecosystem has been expanding in recent times, the market’s reaction to the raised burn rate has been quite moderate. Despite a brief upswing, SHIB’s price oscillated thereafter, indicating the multidimensional forces at work in the token’s valuation. At the time of writing, SHIB is trading at $0.000014 down 0.42% over the last 24 hours.

The slight decline points towards the fact that while the rise in burn rate is a plus, the market might be waiting for more triggers or signals of a steady rise.

In addition, the recent market trend suggests that SHIB has not been able to overcome crucial barriers to overcome. In an attempt to bounce back, SHIB’s price has faced a challenge in breaking the $0.00001462 resistance level, and this has resulted in losses.

The Relative Strength Index (RSI) for SHIB has been trading below the 50-level since the first week of June, which is an indication that bears are still in control. This trend indicates that SHIB may encounter further challenges in reversing its downtrend.