- Shiba Inu’s burn rate surged by 529.72% in the last 24 hours, with 37.53 million SHIB tokens removed from circulation, marking a significant deflationary move.
- While the current SHIB price remains low, continuous token burning could positively impact its long-term value.
In an encouraging development amidst a generally bearish crypto market, Shiba Inu (SHIB) has experienced a significant surge in its burn rate. Over the past 24 hours, the burn rate for SHIB has soared by an impressive 529.72%, according to the latest data from Shibburn. This translates to approximately 37.53 million SHIB tokens being removed from circulation during this period, providing a boost of excitement for the Shiba Inu community.
A Closer Look at the Burn Rate
For those new to the concept, the burning of tokens involves sending a specified amount of cryptocurrency to an inaccessible wallet address, effectively removing these tokens from circulation. This process is akin to reducing the supply of a given asset, which can have notable implications for its market dynamics. In the case of Shiba Inu, about 410.7 trillion tokens have been burned from the initial circulation supply, with the current supply standing at 583.3 trillion tokens.
This recent surge in the burn rate is significant for several reasons. A reduced circulating supply generally makes a cryptocurrency deflationary, potentially enhancing its value over time. This principle is well illustrated by Bitcoin (BTC), which has a capped supply of 21 million coins. The limited supply of BTC contributes to its status as one of the most deflationary assets in the crypto space, which in turn has a positive effect on its price.
The Impact on Shiba Inu’s Price
Although Shiba Inu’s supply is far larger than Bitcoin’s, the continuous burning of SHIB tokens can still render it deflationary to some extent. This deflationary mechanism could eventually support the price of SHIB, making it more attractive to investors over time. However, it’s crucial to note that the current price of SHIB remains under pressure, trading at $0.00001776 according to CoinMarketCap. This marks a decrease of 4.83% in the last 24 hours, with the market cap of the meme coin also down by 4.82% to $10.47 billion.
While the immediate impact of the increased burn rate on SHIB’s price appears minimal, the long-term effects could be more substantial. Continuous and significant token burns may lead to a reduced supply, potentially increasing the token’s scarcity and, by extension, its value. For Shiba Inu enthusiasts, this recent development is a hopeful sign, suggesting that sustained efforts in token burning could eventually yield positive outcomes for this popular meme coin.
The recent 529.72% surge in Shiba Inu’s burn rate is a bullish development that holds promise for the future. Despite the current market downturn, persistent and significant reductions in the circulating supply of SHIB could pave the way for enhanced value in the long run.
