Shiba Inu Burns Rise Despite Token Price Slump
Shiba Inu (SHIB) has experienced a rough start to April, with its price dropping over 11% since the beginning of the month. However, amidst the bearish trend, there’s been a surge in SHIB burning activity by the community.
The most significant burn came from an unknown user who incinerated a whopping 105.46 million SHIB tokens in a single transaction, valued at roughly $2,833. This burn occurred on April 2nd at 5:15 AM UTC. Interestingly, the user’s wallet had been dormant for 141 days before this activity.
🔥🔥 105,469,546 $SHIB -> transferred to dead wallet. https://t.co/elwPwURNeD
— Shibburn (@shibburn) April 2, 2024
Community Steps Up Burning Efforts
Overall, the Shiba Inu community burned a total of 110.47 million SHIB tokens in the past 24 hours, amounting to $2,968. This figure represents a significant increase in burning activity compared to previous months.
Year-to-date, the community has successfully removed 26.33 billion SHIB tokens from circulation. Notably, Shibarium, Shiba Inu’s Layer-2 blockchain, has played a crucial role in facilitating these burns in recent months.
🔥🔥🔥 15,644,329,668 $SHIB tokens have been burned in the month of March with 217 transactions. #SHIB pic.twitter.com/wCqYDGiZgj
— Shibburn (@shibburn) April 1, 2024
Burning Mechanism and Buterin’s Involvement
Burning reduces the overall supply of SHIB tokens, potentially leading to increased scarcity and a subsequent rise in price in the long run. Since Shiba Inu’s launch in 2020, over 410.72 trillion SHIB tokens have been burned.
It’s worth noting that Ethereum co-founder Vitalik Buterin played a major role in this by burning a staggering 410 trillion SHIB tokens received from the founders in 2021. While Buterin initially anticipated the token to crash, SHIB has defied expectations and emerged as a leading cryptocurrency in terms of adoption.
The Road Ahead
The recent price slump and the large single-user burn highlight the ongoing volatility in the cryptocurrency market. However, the community’s intensified burning efforts demonstrate their commitment to the long-term success of Shiba Inu. Whether these efforts will translate to a price recovery remains to be seen, but they represent a significant step towards reducing the circulating supply and potentially influencing future value.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
