The Shiba Inu Community has permanently removed more than 25.7 million SHIB tokens from circulation in 24 hours. Due to this, the burn rate increased to 3,084%. These figures have been released by the Shibburn Platform, which keeps track of transactions sending SHIB tokens to ‘unspendable wallets’. However, this has not had any clear impact on the SHIB token price.
Objective of Burn: Increase value by reducing supply
The Shiba Inu Community is gradually reducing the total supply of tokens by burning SHIB tokens so that its value can increase over time. The largest transaction in this burn round has been of 1.39 crore SHIB tokens. He was gifted half the supply by Shiba Inu’s anonymous founder, Ryoshi, which Buterin burned instead of sending it back to the market.
How much supply of SHIB Token is currently in the market?
The initial total supply of SHIB Token was 1 quadrillion. Now there are about 584 trillion SHIB Tokens left in circulation. Apart from this, about 4.83 trillion tokens are staked in different exchanges and DeFi projects. This means that the supply of SHIB Token is constantly decreasing, making its tokenomics strong.
The next step for Shiba Inu is real utility
Shiba Inu is no longer just a meme token. Along with the burn mechanism, SHIB is also working on utility projects like the Layer-2 Blockchain Project Shibarium, Decentralized Apps, and the Metaverse. The focus of the community is no longer limited to just memes or going viral. Now it is working on building a strong and utility-based crypto ecosystem. Recently, Shiba Inu’s Shibarium platform has touched the milestone of 1 billion transactions.
The burn rate growth of over 3,000% shows that the Shiba Inu community is serious about its token. As the supply decreases, demand can be expected to increase in the long run. However, Shiba Inu still has a long way to go compared to other major cryptocurrencies in the market. If the other utilities, along with the burn, are also successful, then Shiba Inu can move beyond being a meme token and emerge as a strong digital asset.