In the last five weeks, the Shiba Inu (SHIB) team has incinerated about $476,000 worth of tokens. Yesterday alone, the team burned over 9.3 billion SHIB tokens worth over $89,000. As a result of the massive burns, SHIB’s burn rate has skyrocketed to over 28,000%.
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The burnt tokens are from the fees collected on the Shibarium network, launched in August last year. So far, over 410 trillion Shiba Inu (SHIB) tokens are out of circulation via burns. Ethereum co-founder Vitalik Buterin is responsible for burning a majority of the tokens. Buterin received half of SHIB’s initial supply. He decided to burn 90% of the tokens he received and donated the rest to charity.
Will Shiba Inu’s (SHIB) price rally after the burns?
SHIB’s price has rallied 1.1% in the daily charts, probably due to the massive burns. However, the popular memecoin is still down by over 10% in the weekly charts and over 12% in the last 14 days. Moreover, SHIB’s price has fallen by 2.4% over the previous month.
Shiba Inu’s (SHIB) price has struggled through 2023 and has regained a zero after its decimal point, which it deleted in December. However, SHIB’s price may rally if we enter a bull market this year. Many analysts expect the cryptocurrency market to enter a bull run in 2024, fuelled by a spot Bitcoin (BTC) ETF (Exchange Traded Fund) and BTC’s halving event in April.
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Moreover, the SHIB team has said that the Shibarium network will begin to burn tokens in January 2024. Some have said the new burn mechanism can remove trillions of tokens yearly. If the team can burn trillions of tokens monthly, we may see a price spike soon.