The Shiba Inu (SHIB) burn rate has skyrocketed by an insane amount after over two billion SHIB tokens were burned in a single transaction.
The Shiba Inu project, the decentralized cryptocurrency created as an Ethereum-based alternative to Dogecoin, has three distinct tokens that serve different functions. SHIB is the primary token that serves as a community-driven, decentralized currency for millions of users worldwide, gaining global recognition since its late 2020 launch. BONE is the governance token with a total supply of 250 million, allowing the Shib Army to vote on proposals via the Doggy DAO and underpins the ecosystem’s proprietary Shibarium Layer 2 network. Meanwhile, LEASH, with a total supply of 107,646 tokens, offers exclusive incentives to the ecosystem’s loyal supporters, including incentivized BONE rewards for providing liquidity on ShibaSwap and early land sale opportunities in the Shib: The Metaverse project.
Burning Shiba Inu ($SHIB) tokens involves sending them to a dead-end address that renders them unusable for trading or any other purpose. The idea behind burning tokens is that it can reduce the total number of tokens in circulation, potentially making them rarer and more valuable. Additionally, it is seen as a way for token holders to show support for the Shiba Inu project.
By burning SHIB, token holders can directly influence the token’s value, as it decreases the overall supply. However, no guarantee burning tokens will increase their value, as it depends on various factors, such as market sentiment and the overall state of the cryptocurrency market.
As of 8:37 p.m. UTC on 16 May 2023, SHIB burn tracker Shibburn is reporting that in the past 24-hour period, over 3.03 billion $SHIB tokens were burned, with a single transaction burning 3,016,073,367 SHIB tokens just over 17 hours ago. This resulted in the $SHIB burn rate surging by an insane 26,450%.
According to data from TradingView, currently (as of 8:38 a.m. UTC on 16 May 2023), on Coinbase, $SHIB is trading at around $0.00000881, down 1.08% in the past 24-hour period but up 8.57% in the year-to-date period. SHIB’s market cap is %5.2 billion, which makes it the 17th most valuable cryptoasset by market cap.