The Shiba Inu community has been very committed to its SHIB burn since it was implemented. This burn was started to reduce the supply of the cryptocurrency in a bid to increase the value of the coins. Over the months, the burn numbers have been growing. Now, it has gotten to a point where there are reports of hundreds of millions worth of tokens being burned every week.
Another Week Of Burning SHIB
Shibburn is a Twitter account that tracks the amount of SHIB that is being burned, posting a weekly update about the burns. For the last week, the account reported that the amount of SHIB burned was almost 400 million for the 7-day period.
The SHIB tokens were burned across 48 transactions and marked a significant increase in the burn rate of the meme coin on a 7-day rolling basis. It showed an over 260% increase both in the number of tokens burned and the number of transactions in which the tokens were being burned. The previous week’s numbers had come out to 108.6 million tokens burned across 34 transactions.Â
In the last 7 days, there have been a total of 395,803,998 $SHIB tokens burned and 48 transactions. #shibarmy
— Shibburn (@shibburn) October 16, 2022
There are various initiatives that have been put in place to also burn SHIB. One of those is the SHIB Super Store which burned more than 43 million SHIB in the last day. However, most of the burns have mainly been from individual investors.
SHIB price recovers above $0.00001 | Source: SHIBUSD on TradingView.com
Shiba Inu Burn Not Enough
Now, Shiba Inu has been very successful in the market but the sheer volume of its total supply has made it so that there is a cap to how much the digital asset might be able to grow. This is why there is a need for the SHIB burn. However, the SHIB burn, while a promising initiative, has not really made a dent in the supply of the digital asset.
Data from Coinmarketcap shows that SHIB currently has a circulating supply of more than 549 billion SHIB. Comparing this to the number of tokens being burned weekly shows that if the BURN is to have any significant impact on the price of the asset, there would be to be more tokens sacrificed to be burned. Not just hundreds of millions, but hundreds of billions.
Presently, the amount of Shiba Inu being burned looks significant when put in token terms but in dollar value, they are quite low. An example is the more than 43 million tokens burned by SHIB Super Store, which only came out to about $443 worth of tokens.
Nevertheless, the meme coin is holding up through the bear market. It was able to, once again, regain its value above $0.00001 over the weekend, marking a 12% growth from its last week’s low of $0.00000925.
Featured image from Analytics Insight, chart from TradingView.com
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