Shiba Inu token burn program has gained momentum, as 53 million SHIB tokens were transferred to inaccessible addresses within 24 hours, making them scarce. This strategic initiative removes SHIB tokens from circulation, significantly decreasing the total supply of Shiba Inu, a widely recognised meme cryptocurrency. This reduction accounts for over 41% of its maximum supply, initially at 999,982,697,981,254 tokens.
The primary aim of this token-burning program is to enhance the scarcity of SHIB tokens, potentially bolstering their long-term value. Shiba Inu is one of many cryptocurrency projects to employ this approach; even Binance, the world’s largest cryptocurrency exchange, recently revealed its token-burning plan, eliminating over $450 million of BNB tokens.
Is a SHIB Rally Looming?
While the successful implementation of Shiba Inu’s token-burning program is a positive step, its immediate impact on SHIB’s price has been relatively modest. In the last 24 hours, SHIB has experienced a minor 1.5% increase, with a less than 3% gain over the past week. Investors are closely watching to see if this token-burning initiative will trigger a more substantial SHIB price rally.
Another influential factor in the potential rally equation is the ongoing development of Shibarium, Shiba Inu’s layer-2 blockchain solution. Since its launch at the end of August, Shibarium has achieved several noteworthy milestones. The combination of increased scarcity through token burning and technological advancements in Shibarium has instilled optimism within the Shiba Inu ecosystem.
Shiba Inu’s Burn Rate Soars: A Community-Powered Effort
The burn rate of SHIB tokens has experienced a remarkable surge, as reported by Shibburn, a website dedicated to tracking the burning of Shiba Inu tokens. The burn rate has surged by an impressive 233%, marking a significant shift from the weekend when burn rates were lower.
At the start of the trading week, the cumulative number of SHIB tokens incinerated surpassed 56.98 million as 29 distinct addresses transferred these tokens to the burn address. Notably, within the last hour, they successfully sent over 3.7 million tokens to the burn address.
This surge in token burning also increased the combustion rate by 26% compared to the preceding week. The ‘0x909a9’ and ‘0x4be2’ addresses were responsible for some of the most significant burns, collectively incinerating over 15 million tokens, which accounts for roughly 27% of the total tokens burned during the day.
Shiba Inu: Price Behavior
The recent price movement of SHIB mirrors the broader cryptocurrency market trend, often heavily swayed by Bitcoin’s fluctuations. Over 24 hours, SHIB decreased approximately 2.43%, reinforcing a support level of $0.000007.
Nonetheless, SHIB has exhibited a marginal 0.59% weekly decline, indicating an ongoing tussle between bulls and bears for market control. Reflecting this battle, the daily trading volume has surged by 25.85%, currently at $101.7 million.
It’s worth noting that there isn’t any identifiable catalyst to propel SHIB’s price apart from the potential impact of Bitcoin’s recovery. With the likely conclusion of the Bitcoin rally, SHIB could experience a dip, potentially resulting in financial losses for investors.