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Shiba Inu Burn Rate up 6,546%, What Will Impact Be on Price?

Mon, 07/17/2023 - 08:51
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Godfrey Benjamin
Total of 82 million SHIB tokens burnt at massive 6,546% burn rate
Shiba Inu Burn Rate up 6,546%, What Will Impact Be on Price?
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The Shiba Inu (SHIB) meme coin is opening the week to a massive jump in its burn rate, according to data from The meme coin's burn rate has jumped as high as 6,546.26% over the past 24 hours, indicating a massive transaction volume in the Shiba Inu ecosystem.

Per the burn rate data, more than 82 million SHIB tokens have been sent to dead wallets, one of the largest lump sums that have been burnt since the start of the month. The Shiba Inu wallet with the largest burn activity recorded millions of tokens burnt in phases, with the largest coming in at 48,855,841, recorded about 15 hours from the time of writing.

Shiba Inu (SHIB) Burn Rate up 810%, Price Jump Follows

Shiba Inu Burn
Shiba Inu Burn Chart. Source: Shibburn

The burn rate is arguably the most important deflationary feature in the Shiba Inu ecosystem. The goal is to gradually reduce the overall supply of the meme coin, thereby creating value for its users in the long term. The burn rate comes with a sentiment that is often reactionary among community members.

This reaction typically fuels a massive buyup of SHIB, thus contributing to a positive surge in the price of the token in the near term.

SHIB Burn Rate Finally Soars as Millions of Shiba Inu Get 'Set on Fire'

Shiba Inu price reaction

Despite the massive burn rate recorded today, the price of Shiba Inu is down by 1.38% to $0.000007941. The digital currency's slump overnight is a function of the broader market sentiment, which is generally bearish at this time.

On the weekly front, Shiba Inu has retained its growth rate of 5%, an indication of sustained resilience amid dwindling market volatility. With the burn rate sentiment, investors may begin to price in this positivity in the near term, helping to reverse the losses accrued overnight.

Shiba Inu has a massive advantage to further drive its burn rate; the advantage lies in the advent of Shibarium, of which a portion of the transaction fees generated will also be burnt.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.