Actively incineration of SHIB and Shiba Inu (SHIB) which is a tracking platform where the amount of SHIB tokens burned by the community can be tracked. shibburn According to the blockchain tracking service, the famous memecoin has seen a rapid increase in its burn rate over the past 24 hours, after users burned 130 percent more tokens than usual. The service’s Twitter account shared some interesting figures.
We have seen a rally in the number of Shiba Inu tokens burned, with users removing 1 billion Shiba Inu daily from circulation following the announcement of the Shiba Inu crypto card. This greatly aided the slump in supply that would allow SHIB to experience a development that would have a chance of a market reversal.
Koinfinans.com As we reported, due to the weekend, we witnessed a relatively low number of Shiba Inu token burns today as users removed nearly 500 million tokens from circulation in the last 24 hours. However, although the number is below 1 billion SHIB, the total number of tokens burned today has remained above average. So, do all these burns work?
Has the shib token burning mechanism lost its meaning?
This morning, Shibburn also reported on Twitter the number of Shiba Inu tokens burned in the past seven days. According to the data provided, 1.13 billion SHIB were burned in the last week, but this amount no longer affects the Shib Army much as it only accounts for 0.0002 percent of the circulating volume of the token supply, which is estimated to be 550 trillion Shiba Inu tokens. However, it should be noted that these 1.13 billion SHIBs mentioned are also equal to only 13,500 dollars.
In the last 7 days, there have been a total of 1,138,338,325 $SHIB tokens burned and 122 transactions. #shibarmy
— Shibburn (@shibburn) July 31, 2022
Looking at the overall burn-to-price situation, it’s an understatement to say the statistics are depressing. Given that burns are presented as the key deflation mechanism of the token, we can say that it will take seven million years for the entire supply of SHIB to be burned if it continues at these rates.
It is quite clear that SHIB holders who dream of “flying their tokens to the moon” do not have that time either. Of course, the Shiba Inu has other burn portals besides Shibburn, but with one of the most popular being burnt in this case, the overall picture seems pretty clear.
Are burns important to Shiba Inu?
If the burning mechanism continues to operate at the same slow pace, Shiba Inu token holders will obviously have to reduce their appetite for profit. Currently, Shiba Inu already has a market cap of around $6.5 billion, and how much further the project can raise its price and whether this will be possible in the future crypto market remains an unanswered question.
SHIB is having a very busy year, it is being actively promoted as a payment tool by many companies, and Shiba Inu’s developers have promised to launch the Shibarium solution in the third quarter of 2022. However, it is not clear how much impact all this will have on the price of the token, which has five zeros in front of the initial number.
The burns can provide a necessary boost to the SHIB price and even rank with the Shiba Inu in the market capitalization rankings. dogecoin can close the gap between However, if the mechanism continues to run at such a slow rate, it seems like a better idea not to rely on it and reconsider your calculations.
Shiba Inu price performance
The Shiba Inu has been moving in a flag formation for the past 44 days with occasional failed attempts to break the formation’s upper bound due to the SHIB bulls’ lack of purchasing power.
The pattern generally shows that assets are consolidating and will soon experience an increase in volatility, which is expected to determine market movements for the next few weeks or even months.
Considering the fact that the Shiba Inu has been moving in a sharp downtrend for the past few months, the appearance of the pattern should be considered a positive factor for the cryptocurrency, as the pattern now shows technical potential for a reversal.
At the time of writing, the 14th-ranked Shiba Inu token is trading at $0.000011 and has shown a completely neutral price performance with no gains or losses in value over the past 24 hours.
You can follow the current price action here.
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.