The Shiba Inu (SHIB) had a very eventful year in 2022. In April the project launched its own burning portal. The goal was to extract as many meme coins as possible from the circulating supply. SHIB’s supporters and investors can actively participate in the burning process. As a result, meme coin often comes up with a burn rate. But the effect of this on the price is quite curious.
As Koinfinans.com previously reported, SHIB is undoubtedly one of the most popular crypto projects. The low-priced project is enthusiastically supported by its community in hopes of reaching the “moon.” Today, SHIB in particular is witnessing massive buy orders on the popular crypto exchange Coinbase. According to the data, Coinbase has 91% buy orders and only 9% sell orders for Shiba Inu. Additionally, the holding time has jumped from 5 months to 6.5 months, which indicates that the meme coin has growing confidence.
Could Burning SHIB Fly The Price?
Decreased supply due to incineration actually results in an increase in price. In contrast, although SHIB’s burning portal is running full steam ahead with burning SHIB tokens, the amount of meme coins burned is extremely small compared to SHIB’s huge supply of 549 trillion. Also, with the exception of some third-party apps, there are no other attempts to burn large amounts of SHIB. Therefore, if the currently applied combustion systems continue in this way, they will not be very successful at raising the price, at least in the short term.
However, there is only one development that will lead to the big SHIB burn: the launch of Shibarium. Shibarium, the 2nd tier of Shiba Inu, was supposed to be released in Q3 of this year. But the developers missed the scheduled time frame. Depending on how many SHIBs can be burned through Shibarium, this platform will likely have a built-in burning mechanism to send SHIB tokens to four dead-unused wallets.
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.