Surge in Shiba Inu Burn Rate as SHIB Sees Price Uptick

Shiba Inu, a cryptocurrency born from internet memes, experienced a significant surge in its burn rate last month, with a remarkable 250% increase, coinciding with a price rise of 21.9% over the past 30 days. This sharp escalation in burned tokens reflects both market interest and a dedicated effort to reduce the supply of SHIB tokens.

Burn Data Breakdown: September’s Milestone

According to the Shibburn tracking platform, a total of 2.4 billion SHIB tokens were destroyed in September 2023, valued at approximately $42,000. The process spanned across 131 separate transactions. 

Source: X / @shibburn

On September 26 alone, the majority of these tokens were removed from circulation, with almost 2 billion SHIB tokens burned in a single day.

Cumulative Burn Since Launch

Since its inception, Shiba Inu has seen approximately 410.73 trillion tokens wiped from existence, leaving behind a shrinking total supply from the original 1 quadrillion. 

Notably, Ethereum co-founder Vitalik Buterin played a pivotal role early on by burning a substantial portion of the supply he had received, contributing to the deflationary trend.

The Role of Token Burning in Shiba Inu’s Ecosystem

The burn mechanism embedded in Shiba Inu’s strategy is multifaceted. It includes both automatic and manual burns to incrementally reduce the supply. 

By lowering the available SHIB tokens, the burn process aims to create scarcity, which, if demand holds or increases, could push the cryptocurrency’s price upward over time.

Investor Sentiment: FUD and Retail Impact

Despite the rising burn rate and price gains, SHIB’s investor sentiment has been mixed. Blockchain analytics firm Santiment reported that Shiba Inu’s ecosystem is experiencing notable levels of FUD (Fear, Uncertainty, and Doubt). Their analysis highlighted that larger holders—wallets containing over 1 billion SHIB—control the bulk of the cryptocurrency’s supply, while smaller wallets have significantly decreased in number.

A Decline in Social Interest

Santiment’s research further revealed that social engagement surrounding SHIB has been on a consistent downward trend since late July 2023, with minimal online discussion as of late. 

The firm noted a negative bias in market sentiment, particularly from smaller retail traders, who appear to be leaving the SHIB ecosystem at an accelerated pace.

FAQ

Q: What is the SHIB burn rate, and why is it important?
A: The SHIB burn rate refers to the process of permanently removing Shiba Inu tokens from circulation to reduce the overall supply. This strategy aims to create scarcity, which could drive up the token's value if demand remains stable or increases.

Q: How much did the SHIB burn rate increase last month?
A: In September 2023, the SHIB burn rate surged by nearly 250%, with 2.4 billion tokens, worth approximately $42,000, burned in a total of 131 transactions.

Q: What was the most significant burn event in September 2023?
A: The largest single burn event took place on September 26, 2023, when nearly 2 billion SHIB tokens were removed from circulation.

Q: How many SHIB tokens have been burned since its launch?
A: Since its launch, around 410.73 trillion SHIB tokens have been burned, out of an initial total supply of 1 quadrillion.

Q: How does the SHIB burn mechanism work?
A: SHIB's burn mechanism operates through a combination of automated and manual burns. This reduces the supply gradually, with the goal of increasing the token’s value over time.

Q: What is the current sentiment among SHIB investors?
A: Despite the rising burn rate, SHIB investors are experiencing high levels of FUD (Fear, Uncertainty, and Doubt). Analysis shows that larger wallets holding over 1 billion SHIB control most of the supply, while smaller retail investors are exiting the market.

Q: Is social interest in SHIB growing or declining?
A: Social interest in SHIB has been steadily declining since late July 2023, and discussions about the cryptocurrency have remained low, with smaller retail traders moving away from the asset.