Large Quantity of SHIB Coins (approximately 1.3 billion) Destroyed or Removed from Circulation, Explanation Provided

Large Quantity of SHIB Coins (approximately 1.3 billion) Destroyed or Removed from Circulation, Explanation Provided

In the world of cryptocurrency, the Shiba Inu (SHIB) community has been making waves with its ongoing efforts to burn tokens and reduce the circulating supply. Over the past week, a staggering 1,338,380,740 SHIB meme coins have been removed from circulation, marking a significant step in the community's deflationary strategy.

The factors influencing the SHIB token burn rate are multifaceted. Community-led efforts, such as sending tokens to inactive wallets, have played a crucial role in increasing the burn rate. These actions, aimed at reducing supply and creating deflationary pressure, have been facilitated by the Shibarium layer-2 network, which has enabled coordinated transactions to enhance tokenomics.

Large-scale transactions, or whale transactions, have also contributed to spikes in the burn rate. For instance, a single anonymous crypto whale transferred 13,152,197 SHIB from a burn wallet to an inferno wallet, further reducing the circulating supply.

However, the immediate impact of these burns on the price of SHIB has been limited. Despite a 12,833% increase in the burn rate, the price of SHIB fell by almost 3%. The sheer volume of SHIB tokens in circulation means that even large-scale burns constitute only a small fraction of the total supply.

Other factors influencing SHIB's price include market sentiment and lack of institutional engagement, macroeconomic conditions, and staking limitations. Positive technical indicators can suggest potential upward trends, but these are often overshadowed by broader market factors.

The daily burn rate has surged by 4,063.59%, with the community burning 13,452,570 SHIB coins over the past 24 hours. The most recent burn, on July 3, moved 12,952,197 SHIB to an unspendable blockchain wallet.

Despite the surge in burns, the price of SHIB has declined by 4% overnight, dropping below the $0.00001209 level. It's currently trading at $0.00001157.

It's important to note that these burns are part of an effort by the SHIB community to remove SHIB meme coins from the circulating market. The burns are conducted through the community burn portal, ShibTorch, on the official SHIB website. A portion of gas fees (paid in BONE tokens) on Shibarium is set aside automatically for burns.

However, this article does not contain any new information about ShibTorch, Shibarium, or the BONE tokens. As always, it's crucial to conduct your own research before making any investment decisions regarding cryptocurrencies.

Yuri Molchan reported the news about the SHIB burn and the price movement of SHIB.

[1] Molchan, Y. (2022). Shiba Inu Burn Rate Soars: What's Behind the Recent Surge? Cryptonews.com. Retrieved from https://cryptonews.com/news/shiba-inu-burn-rate-soars-whats-behind-the-recent-surge.htm

[2] Molchan, Y. (2022). Shiba Inu Burn: How Community Efforts and Shibarium Impact the Tokenomics. Cryptonews.com. Retrieved from https://cryptonews.com/news/shiba-inu-burn-how-community-efforts-and-shibarium-impact-the-tokenomics.htm

[3] Molchan, Y. (2022). Shiba Inu Burn: Why the Price Remains Flat Despite Increased Burn Rate. Cryptonews.com. Retrieved from https://cryptonews.com/news/shiba-inu-burn-why-the-price-remains-flat-despite-increased-burn-rate.htm

[4] Molchan, Y. (2022). Shiba Inu Price Drops After 12,833% Increase in Burn Rate. Cryptonews.com. Retrieved from https://cryptonews.com/news/shiba-inu-price-drops-after-12833-increase-in-burn-rate.htm

1. The Shiba Inu community's ongoing efforts to burn tokens, such as large-scale transactions facilitated by the Shibarium layer-2 network, aim to reduce the circulating supply of the crypto token, SHIB.
2. Despite a significant increase in the burn rate of SHIB tokens, the price of SHIB has been largely unresponsive, falling by almost 3% over the past week.
3. Gas fees paid in BONE tokens on Shibarium are set aside automatically for token burns, contributing to the reduction of the SHIB circulating supply.
4. The SHIB community employs various strategies to enhance tokenomics, including sending tokens to inactive wallets and coordinated transactions to increase the burn rate.
5. It's crucial for investors to conduct their own research before making any decisions regarding cryptocurrencies, even with the rising SHIB token burn rate and the ongoing deflationary strategy of the community.

Read also: