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Shiba Inu, the popular meme coin, has witnessed an extraordinary increase in its burn rate, with a staggering 7,418% increase and over 2 billion SHIB tokens burned in the past week. This significant reduction in circulating supply has fueled optimism among investors, especially with the Shiba Inu price currently at its highest level of the year.
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Shiba Inu Weekly Burn Reaches New Highs
Shibburn, the official platform that tracks SHIB token burns, revealed on social media platform in the run-up to November 30. This sharp increase resulted in the removal of approximately 1.937 billion SHIB tokens from circulation, a major milestone in the ongoing efforts to reduce the massive supply of tokens.
After this X post from 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 in the past seven days has surpassed 2 billion, amounting to an impressive 2.15 billion SHIB tokens. From this, 386.5 million of these tokens were burned in the last 24 hours alone.
How fire mechanisms affect SHIB price
Token burns are a mechanism by which the supply of cryptocurrency is deliberately reduced, with the aim of increasing scarcity and in turn creating upward pressure on the price of the asset. For Shiba Inu, which started with a huge circulating supply, consistent and significant burns are critical to its long-term valuation prospects. Shiba Inu was created with a total supply of 1 quadrillion tokens, but SHIB burns attempts have reduced circulation by almost half.
The latest Shiba Inu burn numbers underscore the community’s commitment to this strategy, which has seen more than 2 billion tokens removed from circulation in one week. At the time of writing, the meme coin’s total circulating supply stands at 589.26 trillion SHIB tokens.
The goal has always been to burn a majority of the SHIB tokens created. According to Shiba Inu lead developer Shytoshi Kusama, this is the case ambitious goal can be achieved. However, he noted that burning 99% of the total SHIB tokes created is also difficult for a number of reasons.
Additionally, he noted that burns aren’t the only way SHIB wins. There is the need to provide the memecoin with utility and ensure that it gets to a point through viral spread where people don’t want to burn the token anymore.
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At the time of writing, the Shiba Inu price is trading at $0.00003059, having risen about 13% in the last 24 hours. Notably, the Shiba Inu reached an intraday high of $0.00003146, putting it very close to a new price level in 2024.
Featured image from Pexels, chart from TradingView