According to recent on-chain data, SHIB has seen a 7% increase in value over the past week, primarily driven by a massive token burn.
A total of 535,850,180 SHIB tokens were permanently removed from circulation, leading to a significant 416% rise in the weekly burn rate. This burn activity surge is credited with driving up SHIB’s price, currently trading at $0.00001311.
The Impact of the Recent SHIB Token Burn
One of the largest burns in recent memory occurred this week, with 459,294,504 SHIB tokens taken out of circulation in a single event. This burn has played a significant role in fueling the current price movement of SHIB.
These burns are a collaborative effort by the SHIB community, which aims to reduce the token’s supply and potentially increase its value over time.
Various methods have been used to execute these burns, including leveraging BONE gas fees from the Shibarium network. In addition, rival meme coin projects have contributed to the burn process by transferring large amounts of SHIB to dead wallets, further decreasing the circulating supply.
This coordinated effort is key to the price increase and ongoing market interest in SHIB.
Supply Reduction and Its Effect on SHIB’s Price
The recent surge in SHIB’s value highlights the potential of reducing supply to drive up prices. The growing trend of token burns has rekindled discussions among investors about whether this deflationary approach can lead to significant price movement in the future.
By removing large quantities of SHIB from circulation, the community aims to create a scarcity effect, which could lead to upward price pressure.
While the burn events certainly contribute to the rise in SHIB’s price, it remains to be seen whether this momentum will continue. Nonetheless, the community’s active involvement in token burns and its role in the token’s future trajectory is a key factor to watch.
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