Shiba Inu: 104 Million Tokens Burnt Amidst Falling Prices – Will it Spark a Recovery?
Shiba Inu (SHIB), the second most popular meme-inspired coin, has experienced a turbulent period. While recently displaying rapid growth of roughly 8.33% in a single day, surging from a low to a local high, the overall trend shows a significant price correction. Adding to the complexity, over 14 million SHIB tokens were burnt in a single day, yet the Shiba Inu coin price still crashed, down around 2.92% to $0. according to CoinMarketCap.
Massive Token Burns Aim to Combat Price Decline
Despite the market dip, the burn rate for Shiba Inu tokens experienced periods of intense activity. Discussions have ignited, fueled by spikes such as one where the burn rate surged by 489.87% in the last 24 hours, totaling $19.34 million based on the tokens burned.
Burning tokens is a strategy aimed at reducing the total supply of SHIB. Burning many tokens reduces the total supply, potentially increasing prices if demand matches up. In total, nearly 30 million Shiba Inu SHIB/USD tokens have been permanently removed from circulation recently.
Recent Burning Statistics: Mixed Signals
Over the past week, the project has burnt over 1.1 billion SHIB in total. Last month, according to CryptoPotato, the Shiba Inu team burned nearly 380 million tokens as part of its ongoing burning program. This initiative aims to reduce the circulating supply.
However, the impact isn't always immediate. In a rather unexpected turn of events, the Shiba Inu (SHIB) burn rate has, at times, plummeted significantly. For example, there have been periods where the burn rate decreased by a staggering amount in just 24 hours. Hace 6 días Even after burning over 14 million SHIB tokens in the last 24 hours, the price still declined.
Will Token Burning Save Shiba Inu?
The question remains: can these token burns ultimately stabilize and boost the Shiba Inu price? The effectiveness of token burning depends heavily on overall market sentiment, demand for SHIB, and the continued execution of the burn program. While token burns can create scarcity, they are not a guaranteed solution for price appreciation. Investors should carefully consider all factors before making any decisions regarding Shiba Inu.