Everyone loves tokens that are good at consuming supplies. Shiba Inu fans will also be pleased to know that nearly 2 billion SHIB tokens were burned last month, meaning these tokens are no longer in circulation. Despite a rather rough start to December, SHIB traders are hoping for a full-fledged trend reversal and all-time highs following this burn.
Is It Time for the SHIB Rally?
Coin burn is a method used to keep the market value of crypto assets high and to try to stabilize inflation. In theory, when most of a coin’s supply is removed, there is an increase in demand for that coin, and the price skyrockets as a result.
Shiba Inu started his adventure in the crypto market with an initial supply of 1 quadrillion (yes, 1 quadrillion!). The Ethereum-based Dogecoin alternative cryptocurrency then locked half of its token supply in Uniswap and gifted the remaining half to Ethereum co-founder Vitalik Buterin in the hopes that its influence and popularity would give the coin legitimacy or function as a token burn.
The Shiba Inu community frequently engages in SHIB cremation. At the beginning of November, shibburn.com, a SHIB token burn tracking platform, observed that 410,296,586,422,853 SHIB coins were burned – that is, 41,02966% of the total supply. This number rose to 410,298,513,852,239 as of December 4, indicating an increase of approximately 1.9 billion in tokens burned during the period.
In addition, Bricks Buster, a mobile game that burns SHIBA tokens with advertising revenue, accelerates the SHIB token burning process as it burns a large part of the coin with in-game purchases. SHIBArmy also supports a number of community-driven token burning initiatives, including the SHIB Burner playlist and Shiba Coffee Company.
Alongside token burns, whales continue to accumulate more SHIB tokens. For example, as previously reported by KoinFinans, an Ethereum whale named Gimli, yesterday in dazzling quantities; It has raised 28 billion SHIB coins worth $1.2 million. Before the last purchase, the same whale bought 24.8 billion tokens worth $1 million on November 3.
In addition, the Shiba Inu is about to undergo significant changes that are likely to increase its value and price. Shytoshi Kusama, lead developer of the SHIB team, recently discussed the potential of Shiba Inu’s domain to expand into the “Metaverse”.
Shiba Inu, which has not stopped short of listing recently, has recently attracted attention, with a rise of about 30 percent after a listing by the major US cryptocurrency exchange Kraken. Considering all these bullish fundamentals and tokeneconomics like token burning, whale purchases, it should come as no surprise that cryptocurrency holders expect another massive rally in the near future.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.