SHIBA INU token burning, is it genuine or just hype?
What do you think?
I am a SHIB fan and have been researching token burning lately, as well as its impact on Shiba Inu (SHIB) in the future. Token burning, to put it simply, means reducing the number of SHIB, making the remaining tokens scarcer, theoretically driving the price up. But is it that simple? Let’s take a look together!
What I discovered
Initially, SHIB had 999 trillion tokens, and now 410 trillion have been burned, which is a huge number.
Recently, after the launch of the Shibarium Layer 2 network, the burning rate skyrocketed by 6220%. Shibarium transaction fees are automatically burned, resulting in fewer and fewer tokens in circulation.
In January 2024, 9.9 billion tokens were burned, although this is less than the 36 billion burned in December 2023, it is still quite a lot.
So what impact does this have on SHIB's price?
Burning reduces supply, but simply burning tokens won't cause prices to soar. Currently, SHIB is priced at just $0.00002354, and burning hasn’t caused any significant price movement.
To raise SHIB to $0.01, or even $1, burning alone won't be enough. The SHIB ecosystem needs to grow stronger and more extensive, making it useful in real life and attracting more users. Otherwise, burning will only have a short-term effect.
My perspective
Shibarium's token burning is a good thing, but it's not a magic bullet. For SHIB to remain popular in the long term, it needs to improve its utility and attract more investors. Burning can stabilize the price, but to make big profits, we still have to look at demand and usage!
What do you think about burning? Is it a major issue for SHIB’s future, or just hype? Let’s chat!
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