July 14, 2024
1 Solar System Way, Planet Earth, USA
Crypto

Is a Shiba Inu comeback imminent? A 72,453% increase in the burn rate could send the price skyrocketing

One important thing that is happening for Shiba Inu is the rapid acceleration in burning rate. which has sent more SHIB tokens to the burn address. In addition to the increases that have been recorded this week, there has been an increase of more than 72,000% in the burn rate in a period of just 24 hours, marking a change in investor sentiment.

Shiba Inu sees 72,453% increase in burn rate

According to Shibburn data websiteAccording to a site dedicated to tracking the total amount of Shiba Inu tokens burned daily, the SHIB burn rate saw an accelerated increase of 72,453.59% in a single day. This is because over 17 million tokens were sent to an inactive address, meaning they can never be put back into circulation.

The website shows that most of the burnt chips It happened in three different transactions made by two wallets. A single wallet, identified as “0x6081258,” burned more than 13 million tokens in two transactions.

The first transaction from this wallet saw 7,777,777 tokens sent to the burned wallet. Then, in another transaction, the same wallet burned 5,552,834 tokens, bringing the total amount to SHIB tokens burned for this single wallet to just over 13.3 million.

Another notable burn transaction was made by a wallet identified as “0xa2d3bea,” which sent 4,177,779 tokens to the burn address. Together, both wallets accounted for 99% of the burned tokens that saw the 72,453% increase in the burn rate.

Shiba Inu Burn
Source: Shibburn

What acceleration means for price

The purpose of having a community burn for any token, such as Shiba Inu, The goal is to drastically reduce the amount of tokens in circulation in order to increase their value. Burns follow the simple economic law of supply and demand, which states that the higher the supply, the lower the value and vice versa.

Since Shiba Inu has a circulating supply of over 500 trillion tokens, it has become imperative for investors to reduce the supply to help increase the value. So far, the most notable burn is the one conducted by Ethereum founder Vitalik Buterin, who sent around 40% of the supply to a burn wallet in 2021.

Since then, however, the community has continued to burn tokens, and while nowhere near Buterin's level, the community has managed to burn over 700 billion tokens in roughly two years since the burn first began.

If burns continue to accelerate and the number of tokens in circulation drops dramatically, this could lead to a rapid increase in price. However, with how many Shiba Inu tokens were burned Since the burn has started, it suggests that it could be a while until a significant amount of tokens are burned enough to affect the price.

Shiba Inu Price Chart from Tradingview.com
SHIB Price Starts to Recover | Source: SHIBUSDT on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com

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