Shiba Inu (SHIB), the popular meme cryptocurrency, has been experiencing a surge in burning activity, with over 387 million tokens removed from circulation in just 24 hours. This burn frenzy comes amid a significant price increase for SHIB, with gains exceeding 250% in the past month.
The burning mechanism is an inbuilt feature within the Shiba Inu ecosystem. A portion of SHIB tokens are sent to a “burn address” with every transaction, effectively taking them out of circulation. This deflationary mechanism aims to reduce the overall supply of SHIB, potentially leading to a price increase in the long run.
Increased Transactions Fuel the Burn
The recent price surge has coincided with a rise in Shiba Inu transactions. With more activity on the network, the burn mechanism is naturally triggered more frequently. While the daily burn amount of $12,800 might seem insignificant, the consistent removal of tokens from circulation can have a substantial impact over time.
Shibarium Network Boosts Burning Power
The launch of the Shibarium network, a layer-2 blockchain solution for Shiba Inu, has further amplified the burning process. A portion of the fees collected on the network is allocated for periodic burns, occasionally resulting in larger amounts of SHIB being removed from circulation.
For instance, on March 8th, the Shiba Inu team manually burned $340,000 worth of SHIB using funds generated through user activity on Shibarium. This, combined with regular user transactions, led to a total burn of over 13.6 billion SHIB, equivalent to $389,000 on that day alone.
Over 720 Billion SHIB Burned All Time
According to Shibburn, a platform tracking Shiba Inu burns, a staggering total of over 723 billion SHIB tokens have been eliminated from circulation since the token’s inception. This figure excludes the infamous burn of 410 trillion SHIB tokens by Ethereum co-founder Vitalik Buterin, who received a massive allocation of SHIB from the project’s developers early on.
Despite the exclusion, the 723 billion SHIB burned translates to roughly $23.4 million at current prices. This exemplifies the long-term impact of consistent burning on the overall supply and potential future value of SHIB.
SHIB Price Sees Profit Taking
While the burning frenzy continues, the price of SHIB (around $0.0000326 at the time of writing) has seen some profit-taking activity following the recent surge. However, with the ongoing burning mechanisms and potential developments within the Shiba Inu ecosystem, the future price trajectory of SHIB remains an exciting topic for investors and enthusiasts alike.
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