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Shiba Inu, the popular meme coin, has seen an extraordinary spike in its burn rate, with a staggering 7,418% increase and over 2 billion SHIB tokens burned over the past week. This significant reduction in circulating supply has ignited optimism among investors, especially with the price of the Shiba Inu currently trading at yearly highs.
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Shiba Inu weekly burn reaches new highs
Shibburn, the official platform for tracking SHIB token burns, revealed on social media platform Until November 30th. This sharp rise resulted in approximately 1.937 billion SHIB tokens being removed from circulation, a significant milestone in ongoing efforts to reduce the massive token supply.
After this X post by Shibburn, SHIB burn momentum increased along with the Shiba Inu price. At the time of writing, the total number of SHIB tokens burned over the past seven days has exceeded 2 billion, reaching an impressive 2.15 billion tokens. From this standpoint, 386.5 million of these tokens were burned in the past 24 hours alone.
How burn mechanics affect SHIB price
Token burning is a mechanism by which the supply of cryptocurrencies is deliberately reduced, with the aim of increasing scarcity, thus creating upward pressure on the price of the asset. For the Shiba Inu, which started out with a massive circulating supply, sustained and large burns are crucial to its long-term valuation prospects. The Shiba Inu was created with a total supply of 1 quadrillion tokens, but SHIB is burning his endeavors It reduced my circulation by about half.
The latest Shiba Inu burn numbers underscore the community’s dedication to this strategy, with more than 2 billion tokens removed from circulation in one week. At the time of writing, the total circulating supply of the meme coin is 589.26 trillion SHIB tokens.
The goal has always been to burn the majority of SHIB tokens generated. According to the Shiba Inu’s lead developer, Chitoshi Kusama, this An ambitious goal can be achieved. However, it was noted that 99% of the total SHIB tokens generated were burned It’s also difficult for several reasons.
Furthermore, he pointed out that burns aren’t the only way SHIB wins. There is a need to give memecoin utility and make sure it reaches a point through viral distribution where people don’t want to burn the token anymore.
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At the time of writing, the price of the Shiba Inu is trading at $0.00003059, having risen by around 13% over the past 24 hours. Notably, the Shiba Inu reached an intraday high of $0.00003146, which puts it very close to setting a new high for the price in 2024.
Featured image from Pexels, chart from TradingView
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