Shiba Inu Burn Portal is Burning Full Steam ahead; But is it Helping?

Paigambar Mohan Raj
Source: Pexels

Shiba Inu launched its new burn portal on the 23rd of April. The objective was to allow investors to burn portions of their SHIB tokens in order to reduce the circulating supply of coins, which theoretically should lead to an increase in the token’s price.

Despite having been launched less than a week ago, the Shiba Inu burn portal has already destroyed more tokens than all of 2022. The burn portal has permitted the destruction of approximately 16 billion SHIB in just over two days. The entire SHIB burn from January to April 22 was only 12.7 billion SHIB.

Few anticipated the Shiba burns to spread so swiftly at the end of April, especially after March’s 6 billion SHIB burn set a new record for the burning community.

The burn portal sends tokens to one of the three dead Shiba Inu wallets. The portal’s average SHIB burn was 13,968,761 SHIB. While many of these burns included individuals destroying SHIB that they had in their wallets, the SHIB portal’s ‘Buy and Burn’ function was also quite popular. Users have been able to buy SHIB through the site and subsequently burn it, resulting in 382 burns totaling 2.9 billion SHIB.

One mystery individual sticks out among the transactions for ‘burning’ a stunning 1 billion SHIB tokens in a single transaction. The user paid $23,370 to withdraw 1 billion tokens from the circulating supply.

There’s a rumor going around that the unknown and nameless user is a Shiba Inu whale. Nonetheless, the user’s identity has remained a mystery. It has now become the single largest transaction in the ‘burn portal.’

Are the burns helping Shiba Inu?

Although the burns have been very popular, they have done little to impact SHIB’s price. At press time, SHIB was trading at $0.00002351. Shiba Inu is down 7.2% on the 7-day chart and down 3% on the 24-hour chart, hinting at the fact that the burns have had a minimal effect.

A reason why the burns have become so popular is that burning through the portal qualifies users for RYOSHI awards based on their burn pool percentage. However, as the pool expands, subsequent burns will become less profitable.

The Shiba Inu burn portal is still in its early days. The team is working on integrating the Metaverse, ShibaSwap 2.0, and Shibarium into it. Perhaps the good days are yet to come.