The price of the meme-inspired cryptocurrency Shiba Inu ($SHIB) has been underperforming other blue-chip digital assets, even at a time in which token burns for it have kept on growing dramatically, leaving some in its community disappointed.
With the first half of April already experiencing significant burn numbers, March 2023 marked the strongest month since October 2022 in terms of SHIB tokens destroyed, data shows. A total of 6.78 billion SHIB tokens were burned over 540 transactions last month, up from 352.21 million SHIB tokens being burned in 128 transactions in February.
Overall, the burn numbers in March surpassed those of October 2022. January 2023 saw 1.12 billion tokens burned across 223 transactions, while December 2022 and November recorded 2.072 billion (349 transactions) and 1.922 billion (381 transactions), respectively. In October, a whopping 9.05 billion SHIB tokens were destroyed through 2,433 transactions, Bitcoinist reports.
Despite this strong upward trajectory in burn numbers, the SHIB price has not followed suit, causing frustration. Shytoshi Kusama, the lead developer of SHIB, offered his perspective on the matter in response to a comment on the Shiba Inu Telegram.
Kusama addressed the broader cryptocurrency market, and noted that there’s a “classic” cycle of interest rotation in the space, where blue-chip cryptoassets first see interest, before investors move to altcoins like SHIB.
Furthermore, Kusama asserted that the current burn rates are insufficient to impact the SHIB price. He likely refers to the fact that while SHIB burn numbers appear substantial, they are far less impressive when measured in USD. He said:
We are not even close to touching the numbers of burns needed to move SHIB based on burns alone. That’s why we must introduce new technologies, utilities and grow the ecosystem and adoption. When you understand that, you see why past moves are vital and our future ones solidify our dominance.
Notably, Ethereum blockchain data shows that the launched Koyo token project has moved forward with a major burn of the meme-inspired cryptocurrency, helping its burn rate skyrocket 30,000%.
According to the data, Koyo burned an astounding 1.49 billion SHIB tokens in a transaction that comes after Koyo moved 1.1 billion tokens to a dead wallet earlier this year. Koyo, which exclusively debuted on the ShibaSwap DEX last month, has aided Shiba Inu in diminishing its vast supply by 8.75 billion SHIB tokens through various transactions directed to “inferno” addresses since its inception.
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