You’ve probably heard of the Shiba Inu coin if you’ve followed the cryptocurrency market frequently. And if you own the memecoin, you’re in luck because this week saw a significant burn of 305M SHIB tokens. Shiba Inu burning will reduce the supply of the token while also increasing its overall value. But how will the burning impact SHIB’s future?
What Triggered the Recent SHIB Burning Scenario?
The burning of SHIB took place after a sharp selling trend in recent weeks that caused the price of SHIB to drop by 70% from its peak.
The development team’s decision to continuously burn SHIB is a tactic to lower the supply of Shiba Inu and drive up the price. It allows investors to make more significant gains in the future.
However, the long-term effects of this act of arson on SHIB pricing and market stability may cause investors to become concerned and doubtful.
SHIB burning is not a novel practice in the cryptocurrency market; projects like PancakeSwap and Binance Coin have taken similar actions.
SHIB Token Burns Keep Exploding Despite a Market Downtrend
In just seven days, the Shiba Inu community destroyed 1,826,262,961. On April 21, 27,575,359,000,000 tokens entered the dead wallet.
A single wallet burned 15 million SHIBs through two transactions out of the total tokens. Before the burn transaction, there were 2.26 billion SHIBs in the wallet. During the first transaction, almost 1,335,461 Shiba Inu was sent to the deceased wallet.
Using several wallets, the remaining tokens were burned in four separate transactions. Shiba Inu’s burn rate increased by 244.69% on April 21 due to the severe fire.
A whale’s considerable accumulation was another occurrence that caught the attention of Shiba Inu investors. Notably, a whale named BlueWhale0073 purchased two transactions totaling 311,998,734 SHIBS. The whale paid $3,325,906 at purchase to acquire the tokens.
However, as many had predicted, Shiba Inu burning is yet to impact the price of SHIB. The cryptocurrency market is still losing money as of today, April 22. This pattern started earlier this week.
Despite this, the developers keep putting out a variety of developments to draw investors into the market even as prices decline.
How did the Shiba Inu Burn Come About?
There were various explanations for the memecoin’s blaze. Reducing the number of tokens in circulation was one of the fundamental causes. More than 394 trillion SHIB tokens are in use at the time of writing. Roughly 0.0001% SHIB is decreased. Shibburn Twitter handle posts the burning updates.
Even though this does not seem like a substantial sum, it can significantly affect the price of the still-circulating tokens. The burn also demonstrates the Shiba Inu creators’ dedication to the long-term success of the money.
The fire also served as a celebration of Shiba Inu’s launch on the Binance exchange. One of the major turning point in SHIB’s history is its launch on Binance. Binance is one of the world’s biggest and most well-known cryptocurrency exchanges.
Since the precise effects are unknown, the scorching decision continues to stir discussion among SHIB supporters and investors.
Some investors believe that the value will increase in the future. In contrast, others feel that this will only lead to greater volatility in the cryptocurrency market.
Nonetheless, there are many things that investors must be aware of before investing in SHIB or other cryptocurrencies. Rapid and volatile price movements can make this investment very risky. However, crypto knowledge is mandatory for investment.
Shiba Inu burning could affect the stability of the cryptocurrency market and trigger concerns among investors. However, this action can also be considered as a strategy to increase the value of SHIB in the future. As an investor, it is vital to always be careful and weigh the risks and rewards before investing in a cryptocurrency like SHIB.