Shiba Inu burn rate jumped this week as the token community known as Shib army reportedly burn 771.267 million shib in a single day. The Dogecoin-killer meme coin has consistently burnt tokens to prop up the value of the coin by creating scarcity within its community.
The process involves sending Shib tokens to dead wallets designated by the creator of the coin to be forever removed from circulation. This ensures demand stays constant with the declining number of shib tokens in circulation.
On Wednesday, Shiba army burnt or removed 595.233 million tokens from circulation while another 176.035 million was sent to another burnt wallet BA-2. Together, the community has burnt a total of 189.691 million shib in the last 24 hours. Putting Shiba Inu burn rate at 68.32%.
A brief break down, the total shib tokens in circulation dropped to 549.744 billion while 39.951 billion is currently staked. It means a total of 410.305 billion shib has been burnt since inception.
This increase in Shiba Inu burn rate alongside businesses accepting the meme coin as payment would deepen its usage and further enhance its growth in the cryptocurrency space.
However, the coin has been on the decline in the last few weeks. Shiba total market capitalisation rose by 3.86% in the last 24 hours to $12.445 billion. One Shiba coin is presently trading at US$0.000023.
Analysts at FXstreet are predicting a 30% surge in the value of Shiba inu coin due to the huge jump in the Shiba inu burn rate.
The experts, however, capped the increase at about $0.000028. “The extended 2021 volume profile does not reveal significant signs as there isn’t enough volume traded yet. A move up to $0.000040 would have traders accumulating the altcoin and thus increasing the trade activity in Shiba Inu.”