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Shiba Inu’s burn rate soars 7.68M% – What’s next?

TL;DR

  • In the last 24 hours, Shiba Inu (SHIB) burned 8.3 billion tokens, up 7.6 million percent. One transaction burned over 8.2 billion SHIB, wiping most of the currencies.
  • It’s unclear whether the big burning pushed SHIB’s price up or whether it was due to the market rise. Shiba Inu’s price has risen 12% on weekly charts and 13.3% in the last month. 
  • The burning mechanism unfolds in two critical stages: a manual phase in which the official deployer wallet has complete authority and an automated transition planned to begin in January 2024.

Shiba Inu’s burn rate increased by an astounding 7,687,000% in the last 24 hours, culminating in the burning of over 8.35 billion SHIB from its total supply. Meanwhile, an update from Shiba Inu’s chief developer, Kaal Dhairya, outlining the debut of Shibarium’s revolutionary token-burning mechanism has triggered an unprecedented increase in burning activity.

Shiba Inu takes on new heights

Shiba Inu (SHIB) is now trading at $0.00000927 with a 24-hour trading volume of $358,116,284.44. This indicates a price increase of 4.01% in the last 24 hours and a price increase of 13.78% in the last 7 days. Shiba Inu has a market worth $5,482,431,422 with a circulation supply of 590 Trillion SHIB.

The current value of the global crypto market capitalization is $1.61 trillion, representing a change of 0.17% over the last twenty-four hours and 81.19% over the past year. Bitcoin (BTC) currently holds a market capitalization of $819 billion, signifying a dominance of 50.89%. Stablecoins, meanwhile, have a market capitalization of $130 billion, or 8.07% of the total crypto market capitalization.

Shiba Inu’s recent rise in burning activity, which saw a stunning 8.35 billion SHIB burned in just 24 hours, can be linked to Shibarium’s pioneering token-burning process. 

Notably, this approach, which is intended to reduce token supply while increasing network value, has prompted speculation in the crypto community, particularly in the meme coin segment.

The recent 24 hours saw the largest two transactions, 8.24 billion and 100 million, respectively. The total number of SHIB tokens burned from the initial supply was 410.67 trillion after the recent burning activity. The current circulating supply, on the other hand, was 580.51 trillion.

SHIB’s new developments

As per recent reports, Shiba Inu lead developer Kaal Dhairya offered light on the transformative process in a recent blog post on the X platform, emphasizing its importance for the network’s economic model. 

The burning mechanism unfolds in two critical stages: a manual phase in which the official deployer wallet has complete authority and an automated transition planned to begin in January 2024.

A pivotal aspect of the burn mechanism’s success is the network’s adoption rate. As Shibarium experiences an increase in the number of transactions and a significant rise in gas fees – by as much as 1000% – the token burning also grows exponentially.

This correlation is key: the more the network is adopted and used, the more tokens will be burned, creating a self-sustaining cycle of growth and value appreciation.

SHIB Report

Notably, stakeholders delicately manage the burn process in the manual phase to correspond with the network’s health and sustainability. This initial stage necessitates collaboration with validators and node operators, providing the groundwork for a smooth transition.

However, as the process evolves, the automated phase will take over, bringing with it a slew of improvements to improve efficiency and transparency. According to the update, this automated burn process will be governed by preset rules, ensuring a streamlined and effective reduction of token supply.

Should you buy SHIB?

In late November, the crypto market experienced a dramatic momentum shift, partly fueled by Bitcoin crossing the $40,000 barrier for the first time in 19 months. This market improvement has boosted the SHIB price, resulting in a large surge in investor interest during the last two weeks.

On December 3rd, the Shiba Inu price broke through a long-standing downward-sloping resistance trendline. This trendline had been a dynamic resistance for the last ten months, often indicating a market tendency where traders were prone to sell amid bullish bounces. 

As a result, the current breakout represents a watershed moment in market sentiment, perhaps paving the way for Shiba Inu to enter an extended recovery phase. Before investing in SHIB or any other crypto coin, do your own research, understand that the crypto market is volatile, and invest only what you are ready to lose.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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