SHIB price skyrocketed to levels last seen in May 2024.
In January 2024, the team behind this cryptocurrency announced an automatic burning process.
Today, November 11, 2024, over 460 million Shiba Inu (SHIB) were burned and removed from the current circulating supply. This figure represented a 1,000% increase in the Shiba Inu’s burning rate.
This information was released by Shibburn, an analysis site on-chain of this memecoin Its symbol is a dog and its creation was inspired by Dogecoin (DOGE).
Coinciding with this burn, the price of SHIB rose today from $0.000024 to $0.000027, according to data from CoinMarketCaprecovering a trading area that has not been recorded since the end of May 2024.
Currently, Shiba Inu is the tenth largest cryptocurrency in market capitalization, exceeding the figure of 16 billion dollars.
On the other hand, it is worth clarifying that the Shiba Inu cryptocurrency was created as a token ERC-20 on the Ethereum (ETH) network, although the team behind SHIB later developed its own network, Shibarium, which is a second layer network of Ethereum. Users can interact with their SHIBs between both networks through interoperability bridges (bridges).
What is it and what purpose would burning SHIB tokens have?
A burning process tokens occurs when a certain amount of cryptocurrency is sent to an inaccessible address (or “wallet burning») where are permanently blockedthus reducing the circulating supply of the cryptocurrency. The burning of 460 million tokens SHIB means that those tokens They will no longer be available on the market, which decreases supply.
The reduction in supply, in theory, generates upward pressure on the price of the tokenalthough this does not always happen immediately. This effect is based on the law of supply and demand: with less tokens available and a constant or increasing demand, the tokens remaining could increase in value, as each of them becomes more scarce.
In the case of SHIB, the burning of more than 460 million tokens It is an automated strategy that tries to boost the listing price, as reported by CriptoNoticias in January 2024.
This burning mechanic tokens points to capture the attention of investors who see the burning process as a positive measure to reduce inflation of the token.
In this way, currently, after the new Shiba Inu burning procedure, the total circulation of this cryptocurrency is almost 584 billion tokensout of a total of 999 billion SHIB.