Shiba Inu Burns 250 Million Tokens, Price Rises
The Shiba Inu community, one of the most popular meme coins in the market, carried out a significant burn of 250 million tokens. This move positively impacted the token's price, marking the event as part of the 1 CENT DREAM initiative. This ongoing practice by the community aims to reduce the circulating supply of the coin, enhancing the supply and demand dynamics and boosting the token’s price. The strategy seems to have worked, as the price of SHIB increased by 2% within just a few hours.
Token burns are a common strategy in the cryptocurrency world, where reducing supply can lead to price appreciation. The Shiba Inu community, aiming to reignite investor optimism, particularly with the holiday season approaching, transferred 250 million $SHIB tokens to a “dead wallet,” effectively removing them from circulation.
The burn was celebrated by the SHIBARMY, a name given to the Shiba Inu community, reminiscent of the U.S. Army. This is not the first time the community has rallied for a significant price increase. Just days before, on December 3, over 2 trillion SHIB tokens were burned, helping the token reach its highest market value since May.
The burning process involves sending the tokens to a “dead wallet”—a wallet that is inaccessible to anyone. This makes the tokens lost forever, reducing the overall supply and raising the price due to the increased demand for one of the largest meme coins by market capitalization.
As expected, SHIB's price began rising shortly after the burn, moving from $0.00002968 in the morning to surpassing $0.00003 within hours, and it continues to rise.
These developments are expected to provide a significant boost to Shiba Inu's price, attracting more investors. Market analysts predict that SHIB could reach up to $0.00005458 by the end of December, driven by the growing optimism in the cryptocurrency market.
