A recent development in the Shiba Inu community is the ongoing process of token burns, where a portion of $SHIB
tokens are permanently removed from circulation to reduce supply.
In a recent burn, about 17 million SHIB tokens were destroyed, but the impact on the overall market cap was minimal, with the burn worth only around $500.
While the burn did little to move the needle on SHIB’s market cap, the strategy of reducing supply over time is a long-term tactic aimed at increasing scarcity. As the community continues to burn tokens, this deflationary strategy could have a more significant effect if it gains momentum.
Nevertheless, Shiba Inu’s current market cap of $16.58 billion means that these small burns have limited short-term effects. Larger, more substantial burns would be needed to see more dramatic changes in the token’s value.
As SHIB’s community continues to rally behind the burn initiatives, it remains to be seen whether these efforts will have enough of an impact to drive the token’s price upward.