Shiba Inu (SHIB), the meme coin inspired by the popular dog breed, has seen its burn rate skyrocket for the second time this week, raising questions about its impact on the token’s price. Burn rate refers to the process of permanently removing tokens from circulation, aiming to reduce supply and potentially drive up the price.
According to data from Shibburn, a platform dedicated to tracking SHIB burns, the token’s daily burn rate recently experienced a staggering 1,088% increase. This resulted in a significant chunk, 98,136 SHIB tokens, being sent to inactive addresses, effectively rendering them unusable. Notably, this burn originated from a single transaction from a wallet identified as “0x811954f.”
This burning mechanism serves a crucial purpose for SHIB. By reducing the circulating supply, developers hope to achieve price stability and potentially trigger a price rebound in the future. So far, a total of 410,727,971,296,171 SHIB tokens have been burned, bringing the circulating supply down to 583,426,840,565,219 tokens.
However, the recent surge in burn rate appears to be a double-edged sword. While it signifies a positive step towards supply reduction, the broader market seems to be telling a different story. As of press time, SHIB’s price has dipped by 1.5% within the last 24 hours, reaching $0.00001359 according to CoinMarketCap. This price decline is accompanied by a 17.7% decrease in trading volume, dropping to $180 million during the same period. This suggests that the burn rate, for now, hasn’t translated into a price recovery for SHIB.
Despite the lack of immediate price impact, the SHIB community remains committed to exploring additional strategies for price stabilization. The launch of a dedicated burn portal is a potential step in the right direction. Additionally, the much-anticipated Shibarium, a layer-2 blockchain solution for SHIB, holds the potential to propel the token into the spotlight and potentially influence its price trajectory.
Looking ahead, the SHIB community faces a crucial challenge: decoupling price movement from burn rate. While reducing supply is a long-term strategy, the community needs to explore additional avenues to support SHIB’s price in the short term. The success of the burn portal and the broader adoption of Shibarium will be crucial factors to watch in the coming months. Finally, SHIB’s ability to regain the support level of $0.0000137 will be a key indicator of its potential for future price growth.
