Shiba Inu, the popular meme coin, has witnessed an extraordinary surge in its burn rate, with a staggering 7,418% increase and over 2 billion SHIB tokens burned over the past week. This significant reduction in circulating supply has ignited optimism among investors, especially with the Shiba Inu price currently trading at yearly highs.
Shiba Inu Weekly Burn Reaches New Highs
Shibburn, the official platform tracking SHIB token burns, revealed on social media platform X a 7,418% spike in SHIB’s weekly burn rate during the week. This sharp rise resulted in the removal of approximately 1.937 billion SHIB tokens from circulation, a significant milestone in the ongoing effort to reduce the token’s massive supply.
Following this X post by Shibburn, the momentum of SHIB burns has only increased alongside the Shiba Inu price. At the time of writing, the total number of SHIB tokens burned over the past seven days has exceeded 2 billion, reaching an impressive 2.15 billion SHIB tokens. From this, 386.5 million of these tokens were burned within the last 24 hours alone.
How Burn Mechanics Impact SHIB Price
Token burns are a mechanism by which cryptocurrency supply is deliberately reduced, aiming to increase scarcity and, in turn, create upward pressure on the asset’s price. For Shiba Inu, which started with an enormous circulating supply, consistent and sizable burns are critical to its long-term valuation prospects. Shiba Inu was created with a total supply of 1 quadrillion tokens, but SHIB burn endeavors have reduced the circulation by almost half.
The latest Shiba Inu burn figures underscore the community’s dedication to this strategy, with over 2 billion tokens removed from circulation within a single week. At the time of writing, the total circulating supply of the meme coin is 589.26 trillion SHIB tokens.
The aim has always been to burn a majority of the SHIB tokens created. According to Shiba Inu lead developer Shytoshi Kusama, this ambitious goal can be achieved. However, he did note that burning 99% of the total SHIB tokes created .
Furthermore, he noted that burns are not the only way SHIB wins. There is the need to give the memecoin utility and ensure it gets to a point through viral distribution that people don’t want to burn the token anymore.
At the time of writing, the Shiba Inu price is trading at $0.00003059, having increased by about 13% in the past 24 hours. Notably, the Shiba Inu reached an intraday high of $0.00003146, bringing it very close to setting a new price high in 2024.
Featured image from Pexels, chart from TradingView