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- The Shiba Inu burn rate according to Shibburn skyrocketed by close to 500,000 percent in a historic day for the community in which hundreds of millions of tokens were taken out of circulation.
- After burning 2.7 million tokens the day prior, the network burned over 264 million tokens yesterday; even the 2.7 million tokens burned on Sunday were a 5,000 percent increase.
The Shiba Inu community has recorded one of its largest-ever token burns in history. On Monday, the network burned over 264 million tokens, a 500,000 percent spike from the previous day, with one wallet in particular accounting for 99 percent of the burned SHIB.
BURN ALERT ‼️
Impressive 261M $SHIB burnt! 🔥https://t.co/UchzXrspQx
— SHIB HODLER (@ShibaInuHodler) November 27, 2023
Token burns—which means sending SHIB to dead wallets from where they can’t be retrieved—are a critical part of Shiba Inu’s strategy to boost the price of SHIB by cutting down its supply. Typically, these burns are limited to around a million tokens from several addresses as the entire community plays its part in pushing the project to its goal.
However, on Sunday, there was a significant spike when 2.7 million SHIB were burned. This was a spike of 5,000 percent from the previous day, and many in the community recognized the achievement on social media platforms.
But then on Monday, one wallet address made history by splashing on one of the biggest burns of any token in the space. The wallet address, “0xa9d…3e43,” contributed 261,408,966 SHIB tokens to the burn, accounting for about 98.8 percent of the day’s 264 million tokens.
This address has continued contributing to the burns. Yesterday, it sent another 309,000 to a dead wallet for the burn, and today, it eliminated another 6.1 million tokens.
Will The Burns Push Shiba Inu to New Heights?
The Shiba Inu community has been excited by the recent burn rate as it shows the community’s commitment to slashing the SHIB supply. And while it was just one address that contributed the bulk of the crypto, others also put in a few hundred thousand each to the total figure.
Will this sharp increase in burn rate lead to price surges for SHIB? While the market is almost impossible to predict, these burns will most likely not make any dent.
First, the circulating supply of SHIB in the market is an incredible 580,458,195,089,334. For context, if the community burned 264 million tokens every day like it did yesterday, it would take more than 2.2 million days to reduce the crypto supply by 99 percent. This amounts to 6,000 years.
However, these are figures for a 99 percent reduction in supply. To record price spikes, SHIB wouldn’t need to reduce the supply by that much.
The second reason the current burn might not do much is the price of SHIB. At press time, the token is trading at $0.000008323. Again for context, the 264 million SHIB tokens burned yesterday were worth a paltry $2,100. On the broader market, SHIB recorded over $162 million in trading volume, making the burn an insignificant part of the market dynamics.
Nevertheless, the burn remains an important strategy in reducing the SHIB supply and will likely increase as the price of the token rises.
