While Bitcoin is facing a downfall, so do other currencies including meme coins like Dogecoin and Shiba Inu. Shiba Inu has recently emerged as the most talked about cryptocurrency in the system.
One of the reasons SHIB has gained such traction is because of its token-burning campaign that has soared to new heights. According to reports, Shiba Inu has burnt about 200 million coins in just one day. SHIB burn data also shows that the token burn rate has increased by 3000% within the last 24 hours.
It’s also important to note that it’s the individual whale accounts through which the majority of SHIB tokens have been transferred to Shiba Inu’s burn wallet. Since the start of September the burn rate has seen a spike and this week alone more than 500 million tokens have moved out of circulation. If this continues, in the coming days the burn rate might peak at 5000%.
Additionally, while the meme currency is experiencing an exorbitant burn rate, the Shiba Inu is also seeing huge investments from individual whale accounts falling. Also in the past week, two whales have acquired millions of Shiba Inu. Etherscan reports that the first whale purchased 702 billion SHIB coins, valued at $8.7 million, and the second whale purchased 541 billion tokens, valued at around $7 million.
Increasing Burn Rate To Influence SHIB Price?
At the time of writing, Shiba Inu is selling at $0.0000121 after a drop of 0.28% in the last 24hrs. Amidst the ongoing bear market, SHIB has portrayed quite a well price action as the currency has jumped by 93% in the span of 1 yr.
By the end of October 2021, the Shiba Inu managed to reach an all-time high of $0.00004217, but it did not last long and began to decline. Even so, however, the question remains unanswered whether the spike in burning will increase the price of SHIB.
Shiba Inu holds a target of burning trillions of tokens and with the pace at which the burn rate is happening, it appears that it’s much closer to the target. Also, the token developers are looking out for more creative ways of burning the tokens.
However, the burning mechanism alone is not enough to fuel the price action of the Shiba Inu as there are many other challenges to be overcome.
