Recently, Shiba Inu (SHIB) has literally been on fire. The burning rate of SHIB tokens has surged to unprecedented levels, catching the attention of the crypto community. This surge comes as part of a broader effort to reduce the total circulating supply and drive the token’s price higher. In just 24 hours, the burning rate surged by over 2,000%, removing over 50 million SHIB tokens from circulation. This move creates a sense of scarcity, which could positively impact the coin’s price over time.
What fuels a Shiba Inu's burning rate?
One of the main reasons behind the high burn rate is the increasing efforts of the community to make SHIB more valuable. The Shiba Inu team and its supporters have been actively promoting token burns, where large wallets send millions of SHIB to dead wallets. This move is designed to limit supply and boost demand. Recently, the burn rate jumped to 2,900%, wiping out over 30 million tokens in a single day. These aggressive burn rates have revitalized investor interest in SHIB.
October: Positive outlook for Shiba Inu
Crypto enthusiasts are calling this month “Uptober,” and Shiba Inu looks set to make a big splash. Despite the recent burning activity, the price of SHIB has remained relatively stable, but market watchers believe this could be the calm before the storm. As supply continues to shrink, investors are hoping for increased demand, especially with whales buying up massive amounts of SHIB. Robinhood has also added to the excitement by increasing its SHIB holdings.
Does the burning rate of Shiba Inu cause prices to rise?
While burning millions of tokens sounds promising, it does not guarantee an immediate price spike. The relationship between burn rate and SHIB market cap is complex. Despite a recent 5,000% burn rate in a single week, SHIB price action has been modest so far. But many SHIB community members are optimistic. They believe that continued token burns, combined with increased adoption and whale interest, will eventually lead to a significant price spike.
Shiba Inu and Long Term Value
The Shiba Inu burn rate is not just a short-term trend, but a long-term strategy aimed at improving the SHIB token economy. Burning tokens makes SHIB more scarce, which can lead to higher prices over time. With over 400 trillion tokens already burned and the community’s ongoing efforts, Shiba Inu continues to build momentum. The question now is whether this will be enough to push the SHIB price to new highs during the so-called “Uptober.”
