Bitrabo Editorial
Shiba Inu is experiencing a significant increase in its burn rate, leading to a substantial amount of SHIB tokens being sent to a burn address. In a surprising turn of events, there has been a staggering 72,453% surge in the burn rate within just 24 hours, signaling a shift in investor sentiment.
Record-Breaking Burn Rate Growth for Shiba Inu
Data from the Shibburn website, a platform dedicated to tracking daily burn rates of Shiba Inu tokens, reveals a remarkable 72,453.59% surge in the burn rate in a single day. This surge was fueled by the transfer of over 17 million tokens to a burn address, effectively removing them from circulation forever.
The majority of the burned tokens originated from three main transactions carried out by two wallets. One of these wallets, labeled as “0x6081258,” incinerated over 13 million tokens across two transactions.
In the first transaction, this wallet sent 7,777,777 tokens to the burn address. Subsequently, in another transaction, it burned 5,552,834 tokens, totaling just over 13.3 million SHIB tokens burned by this single wallet.
Another significant burn transaction was executed by a wallet identified as “0xa2d3bea,” which sent 4,177,779 tokens to the burn address. Together, these two wallets were responsible for 99% of the burned tokens that contributed to the unprecedented 72,453% increase in the burn rate.
Implications of the Accelerated Burn Rate on Price
Community burns, like the one witnessed in Shiba Inu, aim to reduce the overall token supply significantly to drive up its value. This practice aligns with the basic economic principle of supply and demand, where a decreased supply generally leads to an increased value.
With Shiba Inu boasting a circulating supply of over 500 trillion tokens, reducing the supply has become crucial to enhance the token’s value. Notably, Ethereum founder Vitalik Buterin conducted a major burn by sending approximately 40% of the supply to a burn wallet in 2021.
Subsequently, the community has continued burning tokens, albeit on a smaller scale compared to Buterin’s massive burn. Over the span of two years, the community has managed to burn more than 700 billion tokens since the initial burn initiated by Buterin.
Should the burn rate continue to accelerate and the circulating supply drop significantly, it could potentially lead to a rapid price increase. However, given the substantial number of Shiba Inu tokens already burned, it may take some time before a noticeable impact on the price is observed.