Shiba Inu's SHIB coin burn rate has decreased significantly in recent months, alarming the SHIB army.
The Shiba Inu burn mechanism is an important part of the Shiba Inu ecosystem and Shiba Inu token supply. The burn is essential in making the SHIB token scarce and valuable in the long run.
Let's take a look at why Shiba Inu's burn rate has decreased.
Shiba Inu burn rate down
According to Shiba Inu burn analytics tracker Shibburn.com, the Shiba Inu burn rate has declined considerably.
On September 29 2022, approximately $8 million SHIB tokens were sent to the burn portal. On the other hand, on September 21 2022, $2.9 million tokens were burned, this is one of the lowest burn amounts reported in the last 30 days during that time frame.
Given the current phase of the crypto market, major cryptocurrencies are being crushed under the weight of bearish sentiments and fiat inflation, causing prices to fall to new lows. The low burn numbers could be attributed to the bear market, low trading activity and Shiba Inu investors not burning their tokens.
Lately, the Shiba Inu team has been focusing on the development of Shibarium and Shiba Eternity. Both projects will accelerate Shiba Inu's token burns and contribute to decreasing SHIB's supply.
In recent data from WhaleStats, Ethereum whales are currently holding over $132 million worth of SHIB.
How does Shiba Inu Burn coins?
The idea of burning Shiba Inu tokens was introduced primarily to reduce the one quadrillion SHIB coins in circulation.
To combat the oversupply issue, the Shiba Inu ecosystem burns SHIB tokens often. The metrics are recorded to gauge Shiba Inu's price performance in the long run.
Burning tokens equates to scarcity or limited availability of the token, which is one of many ways cryptocurrencies can increase their value.
Shiba Inu has its own independent burn portal called Shibburn, which was launched in 2022 and has already destroyed nearly 60 billion Shib tokens. The portal was inspired by Ethereum's co-creator Vitalik Buterin's $6.7 million token burn in May 2021.
Burned SHIB tokens are sent to 3 special addresses that have no obtainable key. The 3 addresses are not created by the Shiba Inu team and are used to burn other cryptocurrencies.
One of the burn addresses were used by Vitalik Buterin to burn SHIB in 2021. Tokens sent to the genesis address, aka the black hole, also reduce the overall supply of Shiba Inu.
To encourage the Shiba Inu community to take part in mass SHIB burnings, the portal rewards its users by allocating free SHIB tokens as a credible source of passive income.
Can Shiba Inu reach $0.01?
With a circulating supply of one quadrillion, it will take a long time for SHIB to break past $0.01 or even $0.001.
At the moment, hitting $0.01 would mean that the token must reach a market cap of 5.5 trillion, multiple times greater than Bitcoin's $1.6 trillion market cap at the height of the 2021 bull run.
Shiba Inu holders are hoping that the next bull run can be the catalyst that the token needs to break $0.01, irrespective of its current market statistics in comparison to Bitcoin according to the cryptocurrency market cap comparison website MarketCapOf.
The Shibburn portal is expected to burn 111 trillion tokens annually. With the launch of the Shibarium and Shiba Eternity games, the Shiba Inu ecosystem's burn mechanics will accelerate, which can help with Shiba Inu's price and supply issues in future, but nothing is set in stone.
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