In a remarkable turn of events, the Shiba Inu community has witnessed an astonishing 779,000% spike in the number of SHIB tokens burnt in the past 24 hours.
This staggering surge has set a record for the most significant 24-hour burn in the history of the meme-inspired cryptocurrency.
A whopping 8.62 billion SHIB tokens have been effectively taken out of circulation as they made their way into inactive wallets.
The role of SHIB burns in Shiba Inu’s ecosystem
SHIB token burns have become a crucial element within the Shiba Inu ecosystem, as many investors believe that these burns act as a catalyst for price surges. Any investor can participate in burning SHIB tokens, and once they are burned, they are permanently removed from circulation, leading to a reduction in the overall supply of SHIB.
This latest surge in token burns, notably the majority of which occurred in a single transaction involving the transfer of 8,615,169,427 SHIB tokens to a dead wallet, has been attributed to the Shiba Inu team.
Lucie, Shiba Inu’s marketing lead, confirmed this move and announced that it was the second such burn carried out by the team, with more burn events on the horizon.
Shiba Inu’s ongoing commitment to token burns
The Shiba Inu team had previously executed a similar burn of over 8 billion SHIB tokens on December 4th. This burn was funded by accumulated network fees on Shibarium, with developers pledging approximately 70% of these fees for future SHIB burns.
Shytoshi Kusama, Shiba Inu’s lead developer, has been vocal about the prospect of more SHIB burns in the future. In a social media post, Kusama hinted at plans to remove SHIB tokens worth over $1.2 million from circulation.
He emphasized that the growing adoption of SHIB in 2023 would lead to more token burns, with the potential for billions of SHIB to be burnt in the coming months.
However, he also noted that impactful burns would require widespread adoption by leaders in the decentralized web industry and community members.
Impact on SHIB’s price movement
The recent surge in SHIB token burns has had a positive impact on the cryptocurrency’s price. Over the past 24 hours, SHIB experienced a 10% price spike, reaching its highest point in four months.
SHIB is trading at $0.00001072. While the Shiba Inu team has committed to more token burns, it’s worth noting that the recent uptick in burns has had a minimal effect on SHIB’s total supply, which remains at a staggering 589 trillion SHIB.
Since its inception as a meme token, the Shiba Inu ecosystem has witnessed exponential growth. Nevertheless, it still has a long journey ahead in terms of price growth, and standard SHIB burns are expected to play a significant role in achieving this goal.
Notably, the burn tracker on X reveals that Shiba Inu’s creator, Ryoshi, holds over 103 trillion SHIB tokens, which could potentially be subject to future burns.
As the Shiba Inu community eagerly awaits more burn events and potential price surges, the cryptocurrency continues to capture the attention of the crypto market with its unique approach and the dedication of its team to reduce supply and support its long-term growth.
