Shiba Inu (SHIB) Could Surge 300% After Burning 128 Million Tokens: Is It Possible?
The cryptocurrency community has been buzzing with excitement over the news that Shiba Inu (SHIB) has burned 128 million tokens, sparking speculation that the meme coin could experience a massive 300% price surge. But how realistic is this prediction? Let’s break it down.
1. Understanding Shiba Inu’s Token Burn Mechanism
Token burning is the process of permanently removing a certain number of coins from circulation. This reduces the total supply, theoretically increasing the scarcity of the token, which can drive up demand and, ultimately, price.
For Shiba Inu, token burns have become a central strategy for reducing its massive circulating supply and helping boost the value of remaining tokens. The community has frequently initiated burns to enhance scarcity and incentivize holding.
2. The 128 Million SHIB Burn: What Happened?
According to data from Shibburn, Shiba Inu’s burn rate surged by 310.99% in just 24 hours, resulting in the destruction of 9.74 million SHIB tokens through various community-driven transactions.
In previous months, Shiba Inu had already seen significant burn events. For instance, during the first week of September 2022, over 500 million tokens were removed from circulation.
3. Is a 300% SHIB Price Surge Realistic?
While burning tokens can help increase scarcity and potentially boost prices, predicting a 300% surge purely based on this event lacks solid foundation.
In the past, SHIB has witnessed meteoric rises of nearly 300%, briefly pushing its market capitalization to $23.9 billion and placing it in the top 10 cryptocurrencies by market cap.
4. Conclusion: Should You Bet on SHIB’s Surge?
The burning of 128 million SHIB is a positive signal for the community, as it reflects a continuous effort to reduce supply and potentially strengthen the token’s value over time. However, while it could contribute to upward price pressure, assuming a 300% price increase solely from this event seems speculative.
