Veröffentlicht von • Shiba Inu (SHIB) token has experienced an 800% increase in burn rate, resulting in the removal of almost 2 billion SHIB tokens from circulation.
• The increased burn rate could be caused by community-led efforts to increase scarcity and thus increase the token’s value.
• The price of SHIB has dropped 22.3% over the last seven days, dropping from $0.00001027 to $0.000007976 in just seven days.
Shiba Inu Burn Rate Up 800%: 1.8 Billion SHIB Tokens Burned
Increased Burn Rate Causes Curiosity in Ecosystem
The Shiba Inu (SHIB) token has been on a bear trend following the unsuccessful Shibarium launch, causing its value to drop by 22.3% over the last seven days almost erasing all the last month’s gains. This has led to an increased curiosity within the ecosystem due to an 800% rise in burn rate, resulting in the massive removal of almost two billion SHIB tokens from circulation with 255 transactions in the last 7 days.
Possible Causes for Increased Burn Rate
The increased burn rate may be caused by a number of circumstances, one being community-led efforts to decrease the amount of SHIB in circulation, which would increase scarcity and thus increase the token’s value. Another possible cause could be restoring confidence within Shiba Inu after their unsuccessful Shibarium launch that resulted in more than 1000 ETH becoming stranded within their ETH Bridge project.
Decrease in Whale Activity on Network
The obvious decline in whale activity on the SHIB network is another factor that could have potential drawbacks; from a peak of 120 large transactions there are now only 20 large transactions which can suggest significant holders lack confidence or lead to a more decentralized distribution and minimizing any impact of significant sell-offs on price stability.
Overall Impact on Token Price
The overall impact this development will have on token prices remains unclear as burning tokens does not always result in a price increase; however Shiba Inu was at press time trading for around $0.000007976 which indicates tenacity despite recent difficulties faced by them on market