Shiba Burn Rate up 26000% Price Revival Resumes
Source: Shibburn.com
Shiba Inu (SHIB) is a meme-inspired cryptocurrency that was launched in August 2020. It is designed to be a decentralized and community-driven token with a total supply of 1 quadrillion SHIB. The token gained popularity due to its low price and association with the Dogecoin (DOGE) community.
Recently, SHIB has experienced a significant price increase after the developers announced a burn rate of 2% of the total supply per transaction. This burn rate effectively reduces the total supply of SHIB over time, which could lead to a scarcity of the token and increase its value.
The burn rate of 2% per transaction is much higher than other cryptocurrencies that have a fixed or gradual reduction in their total supply. For example, Bitcoin (BTC) has a halving event that reduces its mining rewards by 50% every 210,000 blocks, which occurs approximately every four years. Ethereum (ETH) also has plans to reduce its supply through a switch from a proof-of-work to a proof-of-stake consensus mechanism.
The SHIB burn rate has been described as “hyper-deflationary” by its developers, as it is expected to reduce the total supply of SHIB at an exponential rate. According to the SHIB website, the burn rate has increased by 26,000% since it was introduced in July 2021.
The announcement of the burn rate led to a surge in the price of SHIB, with the token reaching an all-time high of $0.0000388 on November 7, 2021, according to CoinMarketCap. This represents a significant increase from its previous all-time high of $0.0000353, which was achieved on May 10, 2021.
However, like most cryptocurrencies, SHIB has been subject to significant price volatility, with the price fluctuating rapidly over short periods of time. The price of SHIB has been influenced by a variety of factors, including market sentiment, investor speculation, and the overall performance of the cryptocurrency market.
Despite this volatility, some investors remain optimistic about the future of SHIB, citing the burn rate and the growing community of SHIB supporters as reasons for its potential success. The SHIB community has grown rapidly since its launch, with over 1 million holders of the token, according to the SHIB website.
In addition to the burn rate, the SHIB developers have also announced plans to develop a decentralized exchange (DEX) and a non-fungible token (NFT) marketplace, which could further increase the value of the token.
Source: Shibburn.com
However, there are also risks associated with investing in SHIB, including the lack of a clear use case for the token and the potential for market manipulation. Some investors have also criticized the SHIB developers for holding a large percentage of the total supply of SHIB, which could allow them to manipulate the market.
In conclusion, the recent revival in the price of SHIB can be attributed to the hyper-deflationary burn rate and the growing community of SHIB supporters. However, investors should be aware of the risks associated with investing in cryptocurrencies, including the potential for market volatility and manipulation. Ultimately, the long-term success of SHIB will depend on its ability to establish a clear use case and compete with other cryptocurrencies in an increasingly crowded market.
Author: Daleep Singh
