Shiba Inu Ecosystem and its Love for Token Burning
Anyone who follows the crypto market knows how easy it is to get hooked to it. One of the main reasons is fluctuations on the price chart. These happen for multiple reasons including, but not limited to, adoption, regulations, and utility. There is ideally nothing to control crypto price fluctuations but the way in which the Shiba Inu ecosystem operates, one can assume that it has discovered a way to keep things under control.
The Shiba Inu ecosystem has picked token burning as a way-to-go irrespective of how effective it turns out to be. SHIB tokens are burned frequently and updates for the same are shared with the community on X.
Shiba Inu Ecosystem’s Love for Burning SHIB
What’s constant within the boundaries of the Shiba Inu ecosystem is its love for burning the native cryptocurrency, SHIB. Shibburn, an account on X, publishes posts specifically for tokens that the ecosystem has burned. It recently put up a post stating that a total of 17,082,709 SHIB tokens were burned within 24 hours, with the rate being an increase of 145.47%. However, it is still down by 94.52% over the past 7 days.
Shibburn also has a dedicated website to publicly showcase such numbers. However, according to its X post, the total supply stands at 589,255,586,061,172 with SHIB exchanging hands at $0.00001627.
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SHIB is ranked second on the list of meme coins in terms of market cap which was up by 1.57% to $9,586,402,599 when the hourly Shib update was published before the content was being drafted.
This is not the first time that the Shiba Inu ecosystem has burned SHIB. Previously, Shibburn reported that a total of 3,364,723 had been burned over the past 24 hours with the rate being down by 51.65%. It was published before that that a total of 3,338,723 had been burned in a single day.
Why are Tokens Burned?
Cryptocurrencies are burned for many reasons. At the core of it is the objective to maintain the balance between demand and supply. This, later on, affects the price at which a token is traded. In SHIB’s case, the Shiba Inu ecosystem might be trying to enhance the scarcity of the token so that the demand is greater than the supply and the meme coin gets a better market value.
The Shiba Inu ecosystem may also be burning SHIB tokens to control inflation and enhance community engagement. There is little evidence for the second aspect but it is safe to assume that controlling inflation could be on the ecosystem’s agenda. This generally pertains to maintaining price stability and keeping token supply under control.
Bitcoin is a prime example of token burning except it is looked at as a major event by the entire crypto community. Bitcoin Halving last happened in April 2024, and the process did what it always does — cut mining rewards by half, bring down the supply, and help boost BTC prices (which possibly took longer than expected).
SHIB Price
The native cryptocurrency of Shiba Inu, SHIB, is currently being traded at $0.00001604, which is up by 1.84% in the last 24 hours, according to CoinMarketCap. The price is also up by 1.59% in the last 7 days and is down by 25.93% in the last 30 days.
Volatility is on a higher side as SHIB sees 11.87% mark on CoinCodex. Overall, sentiments are bearish and the FGI reflects 44 points with the 14-day RSI of 31.10.
