A major thing that is happening for Shiba Inu is the rapid acceleration in the burn rate that has sent more SHIB tokens to the burn address. In addition to the surges that have been recorded this week, there has been an over 72,000% increase in the burn rate in a bare 24-hour period, marking a turn in the sentiment for investors.
Shiba Inu Sees 72,453% Increase In Burn Rate
According to data from the Shibburn website, a site dedicated to the tracing of the total Shiba Inu tokens burned daily, the SHIB burn rate saw an accelerated 72,453.59% increase in a single day. This comes as over 17 million tokens were sent to a dead address, meaning that they can never be brought back into circulation again.
The website shows that the majority of the burned tokens happened across three different transactions carried out by two wallets. One wallet alone, identified as “0x6081258”, burned over 13 million tokens across two transactions.
The first transaction from this wallet saw 7,777,777 tokens sent to the burn wallet. Then in another transaction, the same wallet burned 5,552,834 tokens, bringing the total amount of SHIB tokens burned by this single wallet to just over 13.3 million.
Another notable burn transaction was the one carried out by a wallet identified as “0xa2d3bea”, which sent 4,177,779 tokens to the burn address. Together, both of these wallets accounted for 99% of the burned tokens that saw the 72,453% increase in burn rate.
What The Acceleration Means For Price
The purpose of having a community burn for any token, such as Shiba Inu, is to drastically reduce the number of tokens in circulation in an effort to increase the value of the token. The burns follow the simple economic law of supply and demand, which states that the higher the supply, the lower the value and vice versa.
With Shiba Inu having a circulating supply of over 500 trillion tokens, it has become imperative for investors to reduce the supply in order to help drive up the value. So far, the most notable burn is that carried out by Ethereum founder Vitalik Buterin, who sent around 40% of the supply to a burn wallet in 2021.
Since then, however, the community has continued to burn tokens, and although nowhere near the magnitude of Buterin’s burn, the community has managed to burn over 700 billion tokens in around two years since the burn was first initiated.
If burns continue to accelerate and the number of tokens in circulation drops drastically, then it could lead to a rapid rise in price. However, with how many Shiba Inu tokens have been burned since the burn began, it suggests that it could take a while until a notable amount of tokens are burned enough to affect the price.
Featured image created with Dall.E, chart from Tradingview.com
