Bitrabo Editorial
The Shiba Inu burn rate has skyrocketed by 434% in the last 24 hours, following a sluggish start to the week. This surge aligns with the upward trend in the Shiba Inu price as the broader crypto market continues its rally.
Notable Increase in Burn Rate
Recent data from burn tracking website Shibburn reveals a substantial rise in the amount of Shiba Inu tokens being burned compared to earlier in the week. In the past day, 18 burn transactions have taken place, resulting in the incineration of nearly 14 million SHIB tokens.
This 434% surge from the previous day’s total of 2.6 million tokens burned marks a positive shift for the meme coin. The increase in burn transactions indicates a growing interest among Shiba Inu holders in reducing the token’s supply.
Several significant burn transactions exceeding 1 million tokens each have contributed to the majority of burned tokens in the last 24 hours, with smaller transactions complementing the total.
Despite the substantial daily increase in the burn rate, the weekly burn rate is facing a decline. While over 42.4 million tokens have been burned in total, it reflects a 70.41% decrease from the preceding week’s volume, showing a shortfall in burns for the current week. Nonetheless, moving SHIB tokens to the burn address benefits the ecosystem, regardless of the quantity.
Potential Impact on SHIB Price
Reducing the circulating supply of SHIB through the burn initiative is aimed at boosting the token’s price by enhancing demand. With a supply exceeding 500 trillion, limiting upward potential, reducing supply is crucial to stimulate interest.
Despite the burn initiative being active for nearly two years, the progress has been slower than anticipated. About 410.7 trillion tokens have been burned to date, with Ethereum founder Vitalik Buterin burning 410 trillion tokens in 2021. Collectively, the community has burned approximately 700 billion tokens since the initiative started.
While the current burn rate may not promptly drive SHIB towards $0.0001, as desired, the crypto market’s resurgence and Bitcoin’s upward trajectory imply that SHIB still holds promise to reach this level, marking a significant increase from its present valuation.