The Shiba Inu burn initiative is off to a strong start this week, with a remarkable increase in its token burn rate. In the past 24 hours, the burn rate has surged by over 5,000%, indicating a significant reduction in the supply of SHIB tokens. Let’s delve into the details of this impressive development and its implications for the Shiba Inu project.
Shibburn, a platform that tracks SHIB token burns, recorded a staggering 5,043% increase in the burn rate over the last day. This surge in burning activity resulted in a total of 53.13 million SHIB tokens being sent to the burn wallet. The primary drivers of this surge were two massive transactions, each involving over 20,000,000 SHIB.
Coinciding with the rise in burn rate, on-chain tracker Whale Alert reported a massive whale transaction. The transaction involved a transfer of 4.25 trillion SHIB to an unknown wallet. Notably, the sender used a gas fee of less than $3 to initiate this enormous transfer, highlighting the efficiency and low-cost nature of the transaction.
Team’s Burning Initiative
The Shiba Inu team has been actively burning SHIB tokens to reduce the overall supply. On December 22 alone, they burned a whopping 8.47 billion SHIB, followed by an additional 8 billion SHIB later that day. This recent burn marks the team’s fourth undertaking of this magnitude in just one month. As a result, the total number of SHIBs burned by the team has now reached an impressive 33.8 billion SHIBs.
Impact on Shiba Inu Price
Despite the significant increase in burn rate, the Shiba Inu token price has experienced a bearish trend recently, declining by 1% in the last 24 hours. This price action could be attributed to various factors, including market sentiment, overall market conditions, and the presence of speculative traders.
With the continuous burning of SHIB tokens, the overall supply of Shiba Inu is gradually decreasing. This reduction in supply could potentially enhance the scarcity of SHIB tokens, leading to increased demand in the future. Currently, Shiba Inu is trading at $0.000010 with a trading volume decline of over 30%, amounting to approximately $184.65 million. The market cap has also experienced a minor decrease of 1%, now standing at $6 billion.
The recent surge in the Shiba Inu token burn rate showcases the dedication of the project’s team in reducing the supply of SHIB tokens. Despite the bearish price action, the burning initiative has generated considerable excitement in the crypto community. As the supply continues to decrease, it remains to be seen how these systematic burns will impact the value and demand for Shiba Inu. Investors are advised to conduct thorough research before making any investment decisions, as every investment carries inherent risks.
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