Will Rising the Shiba Inu Burn Rate Help it Reach US$1 by 2023?
For quite some time, the Shiba Inu (SHIB) community has been burning tokens. This burn is intended to reduce the supply of the meme coin and thus increase its value. The burn has not always been as high as expected, but the community has increased its efforts to burn SHIB. This has resulted in a significant increase in the amount of SHIB burned in the last week, which may have resulted in some positive price movements.
Shiba Inu Massively Burn Spikes
The number of SHIB tokens burned has increased dramatically in the last 24 hours. According to Shibburn data on Twitter, approximately 23.3 million SHIB were burned in a 24-hour period. It is a more than 1,800% increase over the previous day. The tokens were burned in six separate transactions, with the majority of tokens burned by a single wallet. In one transaction, this wallet consumed 19.2 billion SHIB. However, the total turn rate has since plateaued due to the lack of significant burns. There have currently been 410.4 trillion SHIB burned. This figure also includes the amount burned by Ethereum founder Vitalik Buterin when roughly half of the total Shiba Inu supply was transferred to his wallet. Currently, approximately 30 trillion SHIB are staked.
Is SHIB Ready To Go?
The increase in SHIB burn rate is significant, but only when compared to the amount burned the previous day. When expressed in dollars, it is not significant, especially when compared to the meme coin’s circulating supply. Since the Buterin burn, the Shiba Inu burn has had little effect on the price of the digital asset, and this is likely to continue as there is so little supply being burned. So, while a 1,800% increase in burn rate is impressive, it is still insufficient to affect the price. This is obvious given that the digital asset price has not been reduced by a zero. It lost control of $0.00001 last week and has yet to reclaim it. There are still sell-offs taking place in the market to reduce losses, and SHIB is not immune. A significant increase in the price of SHIB would require increased demand for the digital asset as well as the removal of more supply from circulation. However, this appears unlikely as momentum in the cryptocurrency market remains low.
Dogecoin holder base had since surpassed 4 million during the bull market, but the sell-offs had resulted in a decrease in its holder base. However, as the last few months have been good for Dogecoin, this will not last long. According to data, the number of Dogecoin holders has increased by over 100,000 in the last three months. This is not a large number in a bear market for the meme coin, but it comes at a time when the digital asset’s price is not performing well in the market. DOGE had a total holder base of just over 4.36 million back in July. This figure has increased by about 2.2% in the last three months. At the time of writing, this figure was 4,458.849. The graph also shows that the majority of this increase occurred in October. The vast majority of the 100,000 new holders had arrived in the previous month. The increase also follows a rise in the price of Dogecoin at the beginning of the month and Elon Musk’s latest venture to promote the meme coin. The ‘Burnt Hair’ perfume by the Musk-led Boring Company has already sold more than 20,000 bottles so far.