Shiba Inu (SHIB), a popular ERC-20 token, has been making waves in the crypto space, not only due to its meme-inspired assets but also due to its active token burning initiatives. In a recent development, the SHIB community has seen a significant increase in the rate of Shiba Inu burning, with over 680 million SHIB tokens being destroyed in August 2024 alone, according to the Shiba Inu burn tracker. This article delves into the details of this Shiba Inu token burning event, exploring its potential impact on the price of the SHIB ecosystem and the future outlook for the meme coin, including a Shiba Inu price prediction.
Shiba Inu Burns Rise in August 2024
According to Shepburn According to the data, the Shiba Inu burn rate saw a significant increase in the burn rate in August 2024, with over 680 million tokens removed from the circulating supply. This number represents a 79% increase compared to the number of tokens burned in July, demonstrating the growing commitment of the SHIB community to reduce the token supply through community-sponsored burns and other burning mechanisms.
Record number of fossil fuels burned in one day
The most notable event during this token destruction wave was on August 31, when nearly 300 million SHIB tokens were destroyed in a single day. This record burn was a significant milestone for the SHIB ecosystem, as it demonstrated the community’s enthusiasm to actively participate in the shiba inu token burning process via the shiba inu burn portal.
Monetary value of burnt tokens
While the number of tokens burned may seem large, reaching trillions of tokens burned, the monetary value of the destroyed SHIB token was relatively low, being less than $10,000 at the time. However, the ongoing efforts to reduce the total supply through token burning could have a more significant impact on the coin’s scarcity and potentially fuel a future rise in SHIB prices, provided that demand for SHIB remains stable or increases.
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The impact of burning SHIB on the cryptocurrency market
Despite the positive news about the Shiba Inu burn, the meme coin’s valuation has remained very low, coinciding with a general decline in the broader cryptocurrency market. Shiba Inu is currently trading at around $0.0000133, down 3% on a daily basis and 11% on a weekly basis, according to the latest Shiba Inu news.
Factors affecting SHIB price
While the rate of Shiba Inu consumption is a positive development, it has yet to translate into a significant increase in the token’s price. This is due to a combination of factors, including general market conditions, investor sentiment, and the sheer size of the Shiba Inu supply in circulation compared to the market cap.
Indicators point to a possible recovery
However, there are some indicators that point to a possible recovery for SHIB in the near future, as noted by crypto analysts. One such metric is the Relative Strength Index (RSI), which has been in a downtrend, dropping to 30 on September 1 and is currently hovering around 36.5. This oversold condition could signal a buying opportunity for investors, especially if the altcoin season unfolds.
Additionally, high volume, a momentum indicator that includes the number of transactions over $100,000, has increased by about 4% daily, indicating a potential upward move in price.
Related reading: Shiba Inu (SHIB) Now Accepted as Collateral on Major US Exchanges
SHIB Burn Future and Price Predictions
While the recent Shiba Inu burns have not had a significant impact on the price of the Shiba Inu token so far, the Shiba Inu team is working on developing new burn mechanisms that could burn trillions of tokens per year, significantly reducing the total supply. Such a sustained burn effort could have a profound impact on the scarcity of Shiba Inu, and thus its price, as detailed in the latest monthly burn report.
Possible price hike scenarios
The only time a SHIB token burn led to a significant price spike was when Ethereum co-founder Vitalik Buterin burned nearly half of the asset’s supply by sending it to a burn address or burn wallet. A similar large-scale burn could lead to another 2021-style price spike for the popular meme coin, perhaps even reaching a new all-time high, as some bullish predictions suggest.
cautious look
However, it is important to note that the price of SHIB has rarely increased significantly when tokens are burned, as the number of tokens destroyed is small compared to the 589 trillion tokens in circulation. While the burn rate has increased by over 139,000% in a recent 24-hour period, the asset has only increased by 0.2% in the same time frame.
conclusion
The Shiba Inu community’s commitment to token burning has been evident in the recent surge in the number of Shiba Inu tokens being destroyed. While the monetary value of the tokens burned is relatively low, the ongoing efforts to reduce the supply could contribute to the coin’s scarcity, thus impacting its price movements in the future.
However, the SHIB ecosystem still faces challenges, with the token’s valuation still under pressure amid broader market declines. SHIB’s future success will depend on the effectiveness of the team’s new burn mechanisms, as well as the overall sentiment and demand for the meme coin in the crypto market.
As the SHIB community continues to explore innovative ways to reduce the token supply, investors and enthusiasts will be closely watching the price dynamics of shib tokens and the potential impact of these hot initiatives on the long-term viability of the Shiba Inu project. Stay tuned for more shib news and updates on this exciting journey into the world of shiba inu cryptocurrency.
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