Shiba Inu is burning. Nearly 5.5 million SHIB tokens have been burned in the past day and it is going to increase further. The “burn” mechanism helps in reducing the number of tokens in circulation and driving up the price.
The current circulation may be a hindrance in the coin’s growth in terms of price which is why we have been seeing multiple burn events taken under by various businesses. One such was Bigger Entertainment’s Christmas Burn that saw the destruction of 239 million Shiba Inu tokens. This triggered a momentary rally.
Bigger Entertainment was among the nine businesses that joined hands for the SHIB Burn pledge, an initiative that promises to burn a fixed percentage of profits, sales, or a dollar amount to the official SHIB burn wallet. Steven Cooper, CEO of the crypto record label shared with the community about burning another 2.75 million SHIB tokens on Monday.
Cooper stated,
“Another 2.75 Million #shib gone forever. Bringing our total burned to 889,483,100 since launching our campaign on Oct. 20th. We’re excited for what 2022 will bring!”
This brought the total burn value to 889,483,100 SHIB tokens since it began the campaign in October.
Few other companies that were a part of the Burn pledge included Shiba Coffee company, The Vibe Maquillage, Marklien, Precious Paws, Cryptoon Network, Save The F**king Trees, The SHIBETTES| 1/1 NFTs, and Shiba Search.
Burn SHIBA INU
Earlier in May, Ethereum co-founder Vitalik Buterin was given half of Shiba Inu’s supply after which he burned around 90% of his Shiba Inu holdings. This was worth $6.7 billion at the time and the remaining was said to be donated to a charity. Following this, Buterin had given 50 trillion SHIB tokens [around $1.2 billion at the time] to India’s COVID-19 relief fund set up by Polygon founder Sandeep Nailwal.
These efforts previously drove the SHIB token to an all-time high of $0.00003791. This ATH was short-lived as the coin hit $0.00008845.
What about the price?
Etherscan suggested that 125 million SHIB tokens were burnt over the last five days, however, the price has not reacted to it. The digital asset opened the new year with a value of $0.00003340 and was currently trading at $0.00003290.
Meanwhile, 41% of the total supply of SHIB now stood destroyed. As the coin acquires more mainstream adoption, it is yet to be seen whether the market sentiment rallies like it did in October to re-write a new all-time high.