Shiba Inu (SHIB), the popular meme coin, has been dealt a tough hand. A recent hack on WazirX, India’s largest crypto exchange, saw over $230 million in user assets stolen, with SHIB accounting for a significant chunk—roughly $102 million. This, unsurprisingly, sent the price of SHIB tumbling by 9.44% in the last 24 hours.
However, a glimmer of hope emerged for SHIB holders. The token’s burn rate skyrocketed by a staggering 874.74% in the same period, according to Shibburn, a platform tracking coin token destruction. This translates to over 8.7 million tokens being permanently removed from circulation and sent to “dead wallets.” Notably, the biggest burn transaction saw a whopping five million coin tokens eliminated just six hours ago.
This burning spree holds significance. With a total of 410 trillion tokens already burned from the initial supply, the circulating supply of coins now sits at 583 trillion. This strategic reduction in supply is a key tenet within the coin community, aiming to ultimately turn the coin into a deflationary asset—a concept that typically injects upward pressure on price due to scarcity.
But the road to recovery for SHIB might be long. While burning undoubtedly benefits the token in the long run, its immediate impact on price might be muted. As of now, the price hasn’t responded positively to the burning event. The ongoing market turmoil caused by the WazirX hack likely overshadows any potential price boost from the burn.
Looking ahead, the big question remains: can coin claw its way back from this slump? The answer hinges on several factors. Firstly, the community’s continued efforts to burn SHIB tokens will be crucial. Secondly, SHIB’s price recovery heavily depends on how WazirX and the broader crypto market respond to the hack. Only time will tell if the burning embers of SHIB can reignite a price rally.
