Shiba Inu burning is a process performed to reduce the circulating supply of Shiba Inu. This is usually done by removing a certain amount of Shiba Inu from wallets and destroying them. Thus, the supply of meme coins will decrease and the value of the remaining Shiba Inus may increase.
Although meme coin burning has dropped significantly in recent times, a recent big burn has drawn attention.
The amount of Shiba Inu cremation has increased tremendously, with the 1.1 billion cremation carried out approximately nine hours ago. The typical number of SHIB tokens burned would usually be below 100 million, a rare occurrence for the Shiba Inu ecosystem for such a large token burn to occur in one go.
Token burning is a term often used in the cryptocurrency world and is a process carried out with the aim of reducing the circulating supply of a cryptocurrency. Burning can play an important role in the long-term success of cryptocurrency projects. Because the reduction in supply, combined with the increase in demand, could create the potential for the cryptocurrency to rise in value and rise in price. In the case of the Shiba Inu, the meme coin community aims to increase the Shiba Inu’s market value with burn events and make it more valuable in the long run.
On the other hand, the price performance of the Shiba Inu has remained relatively unchanged, although the tokens in circulation have dropped significantly. Currently, SHIB is trading at $0.00001 with a small decrease in the last 24 hours. Meme coin also failed to break the 200-day exponential moving average (EMA), an important technical indicator used by traders to identify potential trend reversals.
There are several reasons why the price did not rise despite the massive token burn of the Shiba Inu. Broader market sentiment coupled with continued volatility in other major cryptocurrencies such as Bitcoin and Ethereum may be reducing the impact of the token burn on the price of SHIB.
There are also many factors that affect the price of a cryptocurrency, and burning coins alone is not enough. The price of the Shiba Inu may also vary depending on the supply and demand conditions in the market, its use case, its competition with other cryptocurrencies, and many other factors.
You can follow the current price action here.