- Shiba Inu’s monthly burn rate surged nearly 250% in September, totaling 2.4 billion SHIB tokens, coinciding with a 21.9% price increase.
- Despite this positive trend, investor sentiment remains low, with many smaller retail traders exiting the asset amid concerns about FUD
In September, the meme-inspired cryptocurrency Shiba Inu (SHIB) experienced an impressive surge in its monthly burn rate, skyrocketing nearly 250% to a staggering 2.4 billion tokens. This surge in burning activity coincided with a 21.9% increase in SHIB’s price over the past month, indicating a correlation between the burn rate and market sentiment. According to data from the Shiba Inu burn rate tracker, Shibburn, a total of 2,378,422,108 SHIB tokens were burned throughout September, valued at approximately $42,000 across 131 transactions.
🔥🔥🔥 2,378,422,108 $SHIB tokens have been burned in the month of September with 131 transactions. #SHIB pic.twitter.com/5k5hw6jlyH
— Shibburn (@shibburn) October 1, 2024
Key Burning Events
The most significant event in this burning spree occurred on September 26, when nearly 2 billion SHIB tokens were eradicated in a single transaction. This highlights the community’s ongoing commitment to reducing the circulating supply of SHIB, which is crucial for potential price appreciation. Since its launch, approximately 410.73 trillion SHIB tokens have been destroyed from an initial supply of 1 quadrillion. Notably, a substantial portion of these tokens was burned by Vitalik Buterin, Ethereum’s co-founder, who received a significant amount of SHIB in the project’s early days.
Supply Reduction Mechanism
The burning mechanism employed by Shiba Inu is designed to decrease the overall supply of tokens, which can lead to an increase in price if demand remains steady or grows. This strategy involves both automated and manual burns, reflecting a multifaceted approach to maintaining the cryptocurrency’s value. As the community continues to engage in burning activities, investors are hopeful that this reduction in supply will lead to increased interest and price growth.
Investor Sentiment and Market Challenges
Despite the positive developments regarding the burn rate, the overall sentiment surrounding SHIB appears to be facing challenges. A recent analysis by blockchain analytics firm Santiment highlighted that investors in the Shiba Inu ecosystem are grappling with a considerable amount of FUD (Fear, Uncertainty, and Doubt). The study revealed that wallets holding over 1 billion SHIB tokens contain the vast majority of the cryptocurrency’s supply, indicating a concentration of wealth among larger holders.
Additionally, Santiment reported that the percentage of SHIB’s supply held by wallets containing less than 1 billion SHIB has reached its lowest level since November 2022. The overall discussion around SHIB has also diminished, showing a slight negative bias. Smaller retail traders appear to be exiting the asset, which could have implications for future market dynamics.
While Shiba Inu’s burn rate is witnessing remarkable growth, signaling potential for price appreciation, the underlying investor sentiment and market trends warrant close observation as the community navigates through this evolving landscape.
