The cryptocurrency markets entered the new year in high spirits. SHIB, along with the larger cryptocurrency market, experienced a much-needed relief. Bitcoin (BTC) made gains of nearly 40% in the first month of 2023. Shiba Inu (SHIB), on the other hand, made gains of up to 44% in January 2023.
Shiba Inu (SHIB) launched its burn mechanism in April 2022. Since then, the platform has engaged in reducing SHIB’s circulating supply in an attempt to propel its price. In the first month of 2023, SHIB’s burn portal removed 1.12 billion tokens from circulation. At current market rates, the value of the burned SHIB tokens is only $13123.84.
Furthermore, on Jan. 24, 2023, a record number of Shiba Inu (SHIB) tokens were burnt in a single transaction by an unidentified wallet. An astounding 108,476,685 (108.47 million) SHIB were sent to the “dead” wallet. Although the burn rate has gone up and down throughout the month, it currently stands at 0%.
How will Shiba Inu burns fare in February?
SHIB’s burn mechanism has not impacted the asset’s price in the way many would like. The reason is likely because of SHIB’s massive circulating supply. The amount of tokens burned is tiny compared to the number of SHIB in circulation.
However, there is chatter that Shiba Inu’s Shibarium layer-2 launch could potentially lead to trillions of tokens being burned. We do not have an exact launch date for when Shibarium will go live, but it should happen very soon. Nonetheless, SHIB’s burn rate could see a drop in the days leading to the Shibarium launch before picking up steam again.
Investors might be cautious before the launch and therefore reduce their activity. However, most people in the SHIB community are excited about the launch, hoping that it will push the token’s price upwards. At press time, SHIB was trading at $0.00001167, down by 1.2% in the last 24 hours.