Meme coin is in the news for its token-burning campaign. This meme coin hit an all new high on Monday. The dog crypto Shiba Inu has burned more than 200 million coins in the past 24 hours. SHIB Burn data indicates that in just one day, Shib tokens burn rates have risen by around 3000%.
Furthermore, most of the tokens sent to Shiba Inu’s burn wallet are from individual whale accounts. The burn initiative is thriving since its inception. Over 500 million tokens were taken out of circulation within the first week. It is possible that the rate of burn could reach 5000% in just a few days.
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Whale accounts invest massively in Shiba Inu
The token still attracts large investments from whale accounts, even though the Shiba Inu tokens’ burn rate is skyrocketing. Two whales occupied positions worth millions within the Shiba Inu ecosystem last weekend.
First one purchased 702 billion SHIB coin, which cost $8.7million. Ethescan.io data shows that another whale purchased 541 trillion tokens, worth nearly $7 million. However, Shiba Inu’s newest whale continues to remain anonymous. This is one of the many benefits of decentralized financing.
Is the Increased Burn Rate Having an Effect on SHIB Prices?
The number of Shiba Inu tokens being burned increases, so will this negatively affect SHIB tokens prices? Many people are still asking this question as many millions of SHIB coins continue to be out of circulation.
SHIB trades currently at $0.00001233. Yesterday, it briefly traded as low as 0.00001198. The cryptocurrency is performing well in the crypto bear market. It has risen 93% over the past year. The coin had reached a new all-time high close to October 2021 at $0.00004217. Despite market volatility, the price of it declined and remained at the current level. However, it isn’t clear if token burning will increase the token’s proximity to the October 2021 peak. Source: SHIBUSD price chart from TradingView.com
Shiba Iu Gets Nearer to its Trillion Token Burn Benchmark
The recent benchmark burn brings the protocol for meme coins closer to its ultimate goal of burning trillions upon trillions of tokens. This will become an integral part the ShibaSwap 2.0 launch, as well as the Shibarium Layer 2 anticipated. The tokens can still be burned by Shiba Inu Devs, but they are constantly looking for new ways to do so.
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The dog token will still face many hurdles in the next days, if it is to continue to increase in price. The soaring inflation, coupled with the scheduled CPI report release and next week’s FOMC meeting, is also part of it. In fact, SHIB’s price may plateau or even dip in the coming days despite the massive amount of coins burned.
Featured image by Pixabay, chart from TradingView.com