Burning has arguably become the go-to way for projects to make their native tokens deflationary in nature. Ethereum, for instance, started burning tokens post its EIP-1559 upgrade while Terra’s LUNA started burning all seigniorage right after its Columbus-5 upgrade. Now, amongst meme-coins, Shiba Inu is definitely the forerunner of burning. Consider this – Around Christmas last year, Steven Cooper, the CEO of the world’s first crypto-based record label Bigger Entertainment, burnt over 176 million tokens at his Christmas party.
Leaving aside the aforementioned mega-burn event, SHIB tokens continue being burnt on a consistent basis. Interestingly, the burn count yesterday was quite significant, for it reflected a value of 7.1 million at the time of writing. When the latest 3.76 million tokens are added to the aforementioned number, the burn token figure exceeded 10 million in the 48-hour time window.
Does a ‘ruff’ path lie ahead for Shiba Inu?
Data from Etherscan pointed out that SHIB related transfers have gradually started slowing down. The transfer count had been quite consistent during the initial days of this week. However, at press time it was noted that the last transfer had taken place 1 day 4 hours back.
Additionally, it should be borne in mind that Shiba Inu’s performance has not been that noteworthy since the end of October. However, with the help of Bitcoin and the broader market’s support, this meme-coin was up by 7% on the 24-hour window. It was, in fact, seen trading at $0.00002861.
Despite the said rise, the coin was still trading below its triple bottom support line. Now, burning, in most likelihood, would create a supply crunch over the long term and aid SHIB’s price. But as far as the short run is concerned, other metrics, as highlighted in yesterday’s article, need to get back into shape to sustain the uptrend.