Shiba Inu (SHIB) has saw a startling 800% rise in burn rate, resulting in the massive removal of one billion SHIB tokens from circulation. The cryptocurrency ecosystem is ablaze with rumours and curiosity following this abrupt increase in the burn rate.
This increased burn rate may be caused by a number of circumstances. One of the main causes may be community-led efforts to decrease the amount of SHIB in circulation, which would increase scarcity and thus increase the token’s value.
Additionally, the community may have been motivated to take proactive actions to rebuild faith in the token as a result of the recent disastrous launch of Shibarium, in which more than 1,000 ETH were stranded in the bridge.
It is important to remember that while burning tokens might make them scarce, it does not necessarily result in a price increase. Shiba Inu is now selling for around $0.00000792. Given the difficulties it has lately endured, the coin has demonstrated tenacity on the market.
The obvious decline in whale activity on the SHIB network is one of these difficulties. From a peak of 120 large transactions, there are now just 20 large transactions. This decrease in whale activity has potential drawbacks. On the one hand, it can suggest substantial holders lack confidence, which might result in price volatility. However, it may also lead to a more decentralised distribution of SHIB tokens, limiting the price impact of significant sell-offs.
The burn rate and its possible effects on the price of SHIB must be considered in light of other market factors. Shibarium’s botched launch and the ensuing ETH bridge problem were setbacks, but the community’s proactive attitude towards token burning demonstrates its dedication to the project
