- Shiba Inu (SHIB) sees a significant increase in its burn rate, with over 81 million tokens sent to dead wallets.
- The burn rate has surged by 4,085.94% in the past 24 hours, according to data from Shibburn.
- This move is aimed at reducing the number of SHIB in circulation, thus potentially increasing the token’s value.
Shiba Inu (SHIB) records a major rebound in its burn rate, with over 81 million tokens sent to dead wallets, marking a 4,085.94% increase in the past 24 hours.
Build up in deflated SHIB
Every Shiba Inu sent to the burn address is designed to contribute to the overall SHIB taken out of circulation. The latest Shiba Inu burnt has pushed the total incinerated to 410,726,232,655,518 SHIB. With this, about 589,273,767,344,481 SHIB is left in circulation. Meeting SHIB investors’ expectations from this incinerated token remains a volatile subject. The 81,649,878 SHIB burnt is worth roughly $2,039, a valuation that is not enough to trigger a significant uptick in the price of the underlying token. However, the surge in the Shiba Inu burn rate helps in resetting the optimism of community members. It also underscores the community’s confidence that when the SHIB burn portal is launched, it will yield the expected results. With the SHIB army burning the tokens willingly, there is expected to be more intense deflation when automatic burning sets in.
Ultimate target
The ultimate target for Shiba Inu with its burn campaign is to shrink the supply to a level where price discovery can be recorded. Shiba Inu proponents are nursing a long-term price of one cent, a price level that is economically impossible at the current supply rate. Pending when this is achieved, the core team behind Shiba Inu led by Shytoshi Kusama is introducing a new utility that can drive demand. The launch of the Shibarium hard fork is one example that can drive adoption with enhanced protocol versatility. At the time of writing, the price of SHIB jumped 0.55% in 24 hours to $0.00002498.
Conclusion
The significant increase in Shiba Inu’s burn rate is a strategic move to reduce the number of tokens in circulation, potentially increasing the token’s value. While the impact on the token’s price is yet to be significant, the move has boosted the community’s optimism. The ultimate goal is to shrink the supply to a level where price discovery can be recorded, with the long-term price target being one cent. The launch of the Shibarium hard fork is expected to drive demand and adoption, contributing to the token’s value.
