The recent surge in Shiba Inu token burning has once again impacted the SHIB market. Within 24 hours, there were over 341 million SHIB tokens destroyed, which causes the burn rate to skyrocket by approximately 6,936%. This development has bolstered the price of the popular meme coin as it continues an upward trajectory.
The Shiba Inu community, affectionately known as the SHIB Army, has been consistent in its token efforts ever since, a move that has significantly influenced the dynamics of the SHIB market. The burning process, which involves sending tokens to an unusable address, effectively removes them from circulation, reducing supply and increasing scarcity.
A record token burn
Of the transactions that contributed to this burn rate, address “0xcf6” took the lead, accounting for nearly 252.8 million SHIB tokens sent to a dead wallet, according to facts from etherscan.io. The acceleration of the token burn represents a community effort, with 341 million SHIB tokens destroyed in just five transactions in one day.
This amount is almost equivalent to 377 million SHIB tokens burnt last week. Given the dynamics of supply and demand, this significant reduction in circulating SHIB tokens contributes to higher token value in the long run.
The impact was seen particularly quickly in the price of Shiba Inu, which posted gains of 5.6% in the past 24 hours and almost 20% in the past seven days.
The burn spike and subsequent positive impact on the Shiba Inu price highlights the strength and commitment of the community to their chosen crypto. While some critics reject meme coins like SHIB because it has no intrinsic value, SHIB Army’s commitment and market dynamics seem to drive the price upwards.
Shiba Inu continues upward trend
The SHIB token price has been rising in recent days, with the meme coin breaking through multiple resistance levels. SHIB acts up $0.00000791, up 19.6% over the past week. The token currently has a market cap of $4.6 billion, making it the 16th largest cryptocurrency by market capitalization.
SHIB’s daily trading volume has also changed significantly over the past 7 days. Shiba Inu volume has jumped from just $98 million last Thursday to as much as $300 million in the past 24 hours.
The uptrend in the SHIB token price can be attributed to the overall bullish sentiment in the cryptocurrency market. Bitcoin, the leading cryptocurrency by market capitalization, is on an upward trend, positively impacting the prices of other cryptocurrencies, including SHIB.
It is worth noting that the recent burn spike once again sheds light on an essential aspect of tokenomics, the study of the economic systems related to cryptocurrency tokens. If less SHIB is available, the scarcity of the token increases, theoretically increasing the value of the token over time.
Featured image from Shutterstock, chart from TradingView