TL;DR
- In recent months, there have been frequent jumps in the Shiba Inu burn rate. Burning tokens reduces supply and can potentially increase the asset’s value.
- In the case of Shiba Inu, there was no significant price increase. But, as the project has other growth drivers, it makes sense to assess SHIB’s potential holistically.
The Shiba Inu burn rate has grown recently, with millions of SHIB coins sent to dead wallets. This surge resulted from both the Shiba Inu burn mechanism and the community’s efforts.
As the Shiba Inu burn rate skyrockets, will the token’s price rise accordingly? Read this article to delve into the specifics of the latest burn and discover what it may mean to the market.
Shiba Inu Burn: The Latest Figures
November 2023 witnessed 191 Shiba Inu burns worth 627.7 million SHIB. Notably, Shibburn spotted huge amounts of SHIB tokens burned in single transactions recently.
An even greater spike in the burn rate happened when an unknown holder sent 100,000,000 SHIB tokens to the burn address.
These surges in the token burn rate may be correlated to the news about the spreading adoption of the Shiba Inu infrastructure.
A retired boxing champion, Manny Pacquiao, shared his plans to use Shibarium in his charitable organization. It could be either a simple coincidence or someone in the community trying to drive the value of Shiba.
Since the project launch, Shiba Inu has seen 410,662,754,804,484 tokens burned. Keep reading as we discuss the community’s role in burning SHIB tokens.
The Community’s Role in the Shiba Inu Burn Rate Surge
Born as a meme coin, Shiba Inu has gathered a vibrant community of crypto enthusiasts around it. Developers within the SHIB’s fan base have built an ecosystem for the project, with Shibarium being part of it.
As Shiba Inu experiences price swings, loyal adopters try to strengthen their positions by burning SHIB tokens. The idea behind these burns is to reduce Shiba Inu’s circulating supply, pushing its value up.
Shiba Inu Burn Rate Impact on the SHIB Ecosystem
Shiba Inu Circulating Supply & Price
With each Shiba Inu burn, the tokens become scarce. Scarcity, in turn, should boost the SHIB coin value.
But, despite the growing burn rate, the SHIB price doesn’t display stable growth. We can see spikes on the price chart on days of significant burns. However, the price quickly rolls back down to its monthly average.
As of writing, SHIB is trading at $0.00000812. Amidst the reduced circulating supply, the price decreased by 5.5% in the past 7 days.
While burning tokens can influence the SHIB price, it’s not the only market force determining the coin’s value. We’ll discuss other factors shaping the SHIB’s future price trajectory later, so stay tuned!
Market Sentiment
Due to the soaring burn rate, Shiba Inu receives significant attention in the crypto community. Seeing SHIB coins destroyed, investors anticipate the token appreciation due to the scarcity. These expectations may contribute to a bullish sentiment of Shiba Inu.
At the time of writing, 75% of the community was feeling good about SHIB.
Shiba Inu Price Prediction
Started as a meme coin driven by hype, Shiba Inu has evolved into a thriving ecosystem. With expanding utility and adoption as a payment method, SHIB price prediction looks promising.
Short-term forecasts suggest a price of $0.00000977 by the end of 2023 and a surge to $0.0000101 in early 2024. Analysts are also optimistic about Shiba Inu’s long-term prospects and expect it to hit the $0.0000303 price mark in 2025 and $0.0000514 in 2026.
SHIB Token Utility
Trillions of coins taken out of circulation may impact the utility of SHIB tokens. Being scarce, the remaining tokens might become more valuable within the Shiba Inu ecosystem. This potentially higher SHIB value may encourage holders to actively interact with the project.
Potential Growth Factors for Shiba Inu
Mass Adoption
Shiba Inu, one of the top 20 largest coins by market cap, is seeing increasing adoption. We’ve already mentioned Manny Pacquiao’s charitable foundation planning to adopt SHIB. Moreover, many companies and financial institutions embrace SHIB as a payment method.
Some of the famous brands that accept SHIB are AMC, Nordstrom, and Newegg. The increasing real-world applicability of Shiba Inu tokens is likely to foster the coin’s price growth.
Further Advancements of Shibarium
Along with the SHIB burn rate surge, Shiba Inu’s layer 2 scaling solution, Shibarium, is gaining traction. In October 2023, Shibarium reached a remarkable milestone, with the total trading volume hitting 3.2 million. As of November 2023, the total number of transactions is approaching 4 million.
Shibarium stands out against rival meme coin projects with speedy transactions and low costs. Further network enhancements can drive more users and developers to the platform. Such growing demand for Shiba Inu’s capabilities can potentially boost SHIB’s value.
Summary
The Shiba Inu burn rate is an important indicator for investors and traders to track. As burning tokens assumes removing them from circulation, the coin’s value has the potential to grow. A soaring burn rate may indicate strong community support.
Still, SHIB’s future price dynamics depend on factors other than the number of tokens burned. To make informed investment decisions, it’s important to look at the project’s ecosystem and overall market sentiment.
The primary goal of burn mechanisms is to reduce the supply of the coin. Burning tokens involves withdrawing the corresponding amount from circulation. As a result of scarcity, the price of remaining tokens may go up.
The Shiba Inu burn rate is a dynamic indicator that varies over time with tokens sent to dead wallets. Furthermore, the development team can adjust the burn rate as needed.
For the current SHIB burn rate, check out the project-related resources. Shiba Burn Tracker provides information on the percentage of tokens burnt from the initial supply. Shibburn tracks the burning transactions and the dynamics of the SHIB burn rate within 24 hours.
To burn your SHIB tokens, you need to send them to a dedicated burn address. Currently, there are 3 addresses to use for this purpose, including the one often referred to as the “black hole”. You can check these burn addresses on Shibburn.
Shawn Munir
TL;DR In recent months, there have been frequent jumps in the Shiba Inu burn rate. Burning tokens reduces supply and can potentially increase the asset’s value. In the case of Shiba Inu, there was no significant price increase. But, as the project has other growth drivers, it makes sense to assess SHIB’s potential holistically. The Shiba Inu burn rate has grown recently, with millions of SHIB coins sent to dead wallets. This surge resulted from both the Shiba Inu burn...
