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In a recent tweet, the Shibburn handle has talked about the drivers that push up the price of any crypto, and, most importantly in this context, Shiba Inu.
"This is what drives the price up"
@Shibburn has explained why burning SHIB, even only a small amount, is important. According to him, this is related to the well-known formula "supply+ demand." Burning, the tweet says, is the same as someone buying $100 in SHIB and then keeping it forever.
Supply + Demand, that's what drives the price up. Burning is equivalent to "someone buying $100" in tokens and never "selling it", since it's locked forever. Imagine a team telling their holders that burning has no effect in price when their supply is in the quadrillions.
— Shibburn (@shibburn) November 14, 2022Crypto Market Prediction: Can Ethereum Surge Toward $3,500 as Momentum Rebuilds? XRP's Bullish Reversal Targets $2, Dogecoin (DOGE) Eyes Fresh Upside PushEarly Uber Investor Urges Tether to Sell Its Bitcoin HoldingsMorning Crypto Report: XRP Unlocks Apple and Google Pay in 40 Countries, Shiba Inu (SHIB) Aims at 32% Upside, Bitcoin Options Spike to $13.1 BillionCrypto Market Prediction: Can Bitcoin Break $90,000 on Recovery March? Shiba Inu (SHIB) Fresh Rally Starts, Is XRP Building Bullish Momentum?
In the meantime, Shibburn summarized in one its recent tweets that, in the past 24 hours, the community has sent a total of 20,999,999 meme tokens to unspendable wallets.
Compared to Monday, there has been a slight decline in the burned amount; 23,823,149 SHIB were removed from circulation during the same period between Sunday and Monday.
If on that day, the burn rate of SHIB spiked by 1,064%, then now it has dropped by 11.85%, according to the Shibburn website.
Here's what's going to reduce SHIB supply significantly
Shibburn also stated that there are several SHIB-related projects that will be integrated in the future — Shibarium Layer 2 protocol being one of them. These projects, according to the burner, are going to substantially reduce the circulating Shiba Inu supply.
Shibburn itself takes an active part in sending SHIB tokens to dead wallets using three projects — the Shibburn platform itself, Shibburn Radio and Twitter Super Follows.
It’s still early, several projects are yet to come, including Shibarium, which will significantly reduce supply. Can’t make calculations based on what’s currently burning. That’s just my opinion.
— Shibburn (@shibburn) November 14, 2022
Dan Burgin
Vladislav Sopov
U.Today Editorial Team