Shiba Inu, commonly known as SHIB, is a decentralized blockchain-based token that was created with the intention of becoming a new version of Dogecoin. The recent report by Shibburn, a platform that keeps track of SHIB transfers to unspendable addresses on Etherscan, reveals that in the past 24 hours the burn rate of Shiba Inu has drastically reduced by over 50%. This means that only 7,261,876 SHIB Coins were sent to dead-end wallets during the period. The price of the token, which had experienced a surge in the past, has not then been able to recover to its previous level yet.

The rate of SHIB burn is primarily dependent on how many tokens are removed from circulation the day before. Last week there had been four-fold growth in its burn rate, but at this instance, it has started to reduce.

The decreasing burn rate might lead one to believe that something is wrong, however, the data provided by Puppyscan suggests otherwise. The platform reveals that in the past week the number of transactions has not been high and has seldom exceeded 20,000 per day.

Due to the efforts of the developers, a token burn mechanism was implemented on Shibarium after the latter was released on March 11. As per their documentation, each transaction on the testnet would contribute to SHIB burns. This is done through a certain percentage of transaction fee paid in BONE, the governance token of the ShibaSwap DEX, which is then locked in Shibarium and converted into SHIB later before being burned.

In the meantime, the Shiba Inu's Twitter handle is continuously gaining followers and is standing at 3.7 million at the moment. On the other hand, the total number of SHIB holders is slightly lower than the number of Twitter followers, which stands at 2,373,725. Furthermore, the same number of followers is also seen for Dogecoin, the original meme token, leading for a neck-to-neck comparison between SHIB and DOGE.

The burning of cryptocurrency tokens is not a new concept yet it is certainly gaining more attention due to its potential to affect the token’s price. Burning up tokens is an effective way of reducing their supply and hence, creating a higher demand and eventually increasing the price of the tokens. Taking into consideration the current drop in SHIB's burn rate, there is still a chance it can rebound and the token can still flourish to create a better market value.



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