Millions of SHIB Gone, Shiba Inu Burn Rate Skyrockets

The Shiba Inu ecosystem, in a stunning surge, incinerated nearly 31 million SHIB tokens in just 24 hours yesterday, sending the daily burn rate skyrocketing over 1,300% and intensifying the debate over the meme coin’s future.

The sudden spike in burned $SHIB intentionally sent to a burn address — occurred Wednesday, dramatically outpacing the burn rate observed over the previous week. Data reveals that 30,156,987 SHIB were burned in the past 24 hours, while the past seven days saw 142,062,714 SHIB removed.

Shiba Inu Burn Mechanics and Market Impact

The process of burning tokens, a deflationary mechanism, reduces the overall supply of a cryptocurrency, in this case, Shiba Inu, potentially increasing its scarcity and, theoretically, its value. The Shiba Inu community, more popularly known as the Shib Army, has embraced this strategy as a way to potentially influence the token’s price, which has experienced significant volatility since its inception.

The past week has seen significant, if somewhat lower-scale, burning activity, the 7-day burning average has risen by 50.8%.

SHIB Torch and Community Efforts

Alongside independent burn initiatives, community-driven projects like SHIB Torch, a platform built by the Shiba Inu Core Team for burning SHIB tokens, also contributed significantly to the reduction in SHIB’s circulating supply. SHIB Torch reported that 547,791,530 $SHIB have been burned, marking a 14.92% increase from the previous week.

a scrrenshot of ShibTorch portal, a Shiba Inu platform for burning SHIB tokens

These organized efforts highlight the active role of the Shiba Inu community in shaping the token’s future. The long-term effect of burning, at rates like the above, are significant for the popular token.

Shiba Inu Price Action

As of 8:01 a.m. ET on Thursday, Shiba Inu (SHIB) was trading at $0.00001472, reflecting a 2.50% increase for the day. This seemingly modest daily gain, however, contributes to a more substantial narrative: a 42.45% price surge over the past year. The 24-hour trading volume stood at $278.71 million, indicating a healthy level of market activity.

These price movements are not isolated events but rather part of a complex interplay of factors influencing the cryptocurrency’s valuation. The one-year price increase of over 40% is particularly noteworthy, suggesting a resurgence of investor interest after periods of volatility that have characterized meme coins like SHIB.

Data from CoinMarketCap provides further insight into the underlying dynamics. SHIB, currently the second-largest dog-themed cryptocurrency by market capitalization, boasts a circulating supply of 589.25 trillion tokens. This vast supply is a key characteristic of SHIB and a factor that significantly influences its price per token.

Furthermore, SHIB’s market capitalization experienced a 2.59% increase, reaching $8.68 billion. This growth in market cap, slightly outpacing the daily price increase, suggests that the buying pressure is not solely limited to existing holders increasing their positions. It may indicate an influx of new capital into the SHIB ecosystem, potentially driven by positive sentiment, increased awareness, or speculative trading.

Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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