Ether (ETH), the world’s second-largest cryptocurrency, broke its own record last October 29, courtesy of the strong performance of canine coin Shiba Inu.
According to CoinDesk data, the smart-contract blockchain Ethereum peaked at $4,402 on that day, surpassing its old record in May with $4,379.
Upon reaching its apex, the cryptocurrency was up more than 60% from its September trough and had rallied by 497.50% year-to-date.
ETH achieved this new record by burning more tokens than it emitted in the last 24 hours. At around the same time, Shiba Inu was also rallying.
Coin burning is a process of removing tokens from circulation and is equivalent to stock buyback in the crypto market.
Based on Tokenview’s tracked data, Ethereum was able to produce 15,109.34 ETH while it burned 16,710.20 ETH, a total of 1,600 ETH net supply reduction was made in just 24 hours.
Chris Weston, research head at Melbourne-based broker Pepperstone said, “This is a momentum beast at the moment, and it looks bloody strong. A recent technical upgrade to the Ethereum network seemed to have helped.”
By virtue of the Ethereum Improvement Proposal (EIP) 1559, which took effect last Aug. 5, a percentage of fees paid to the miners are burned. This results in a considerable reduction of coins from circulation. As a result, over 668,339 ETH coins have been removed, accounting for half of the new coins released within the same time frame.
Shiba Inu: the “DOGE Killer”
Living up to its claim as the “DOGE Killer,” Shiba Inu just ousted Dogecoin in the top 10 cryptocurrency last October 19 after a mammoth 800% rally this month, tallying a record high of $0.00008870.
Defi Llama reported that the total value traded in decentralized exchange ShibaSwap doubled to $512 million in October.
Based on CoinGecko data, SHIB’s current market capitalization is $37.8 billion, higher than DOGE by $936 million. In other words, SHIB overtook USD coin and Dogecoin to gain 9th spot in the top 10 cryptocurrencies.
In response, centibillionaire Elon Musk was quick to make a tweet revealing that he does not have any SHIB tokens, immediately decreasing the SHIB’s market value. However, despite the snub, it failed to hinder the momentum of the meme coin.
Top ETH burner
Last October 19, Shiba Inu became the third-largest ETH burner, just behind Uniswap v.2 and Tether. According to Tokenview, over the previous 24 hours, Shiba Inu burnt 815.47 ETH or an equivalent of $3.5 million.
The amount of ETH burned is credited to the increased network usage of the canine coin. The enormous 800% rally this month contributed to this rapid burning of the ETH.
As of Friday, there are 837,869 Shiba Inu holders based on CoinMarketCap’s data. However, the top 10 holders control 71.90% of the coins circulating.
Because of the blazing performance of SHIB, it has become the fifth most frequently called contract in the ETH network. According to Dune Analytics, over 450,000 unique calls for SHIB were recorded.