The Shiba Inu team aims to boost the price and market capitalization by reducing the circulating supply by sending tokens to dead wallets, thereby increasing SHIB’s scarcity.
Shiba Inu (SHIB) has experienced a significant rise in its token burn rate, increasing by 8,596.57% in the last 24 hours, according to Shibburn. During this period, over 17.7 million Shiba Inu tokens have been burned. To date, nearly 410 trillion tokens have been removed from the initial supply. Currently, the circulating supply of SHIB stands at 583 million tokens.
The Shiba Inu team aims to boost the price and market capitalization by reducing the circulating supply. They achieve this by sending tokens to dead wallets, thus increasing the scarcity of the coin. This practice helps make the SHIB ecosystem more efficient and sustainable. The token becomes deflationary by creating an imbalance in supply and demand, which could increase its price over time.
Despite the significant increase in the burn rate, SHIB’s price has not yet reacted. The token is trading at $0.00001685, down 1.76% in the last 24 hours and 32.80% over the past 30 days. This sharp decline has caused concern within the community. SHIB’s current bearish trend reflects broader market sentiment, which is affected by various macroeconomic concerns.
Supply Strategy and Market Dynamics
The increase in the token burn rate is a strategic move by the Shiba Inu team to address inflation issues and make the SHIB ecosystem more sustainable. By reducing the number of tokens in circulation, they aim to create a scarcity effect, which can increase the token’s value. However, the immediate impact on the price has been minimal, as SHIB faces a bearish market trend.
SHIB must do more than increase token burn rates to recover. While burning tokens usually affect prices in the long term, they may not immediately change prices. The community watches closely to see if burning tokens will bring good results in the long run.
In summary, while the Shiba Inu token burn rate has surged dramatically, the price has not shown a corresponding increase. The Shiba Inu team remains committed to their strategy of reducing the circulating supply, with the hope that it will benefit the ecosystem in the long run.