The most recent occurrence in the SHIB ecosystem, especially burning large number of Shiba Inu tokens has attracted concerns from the crypto community. Nevertheless, the burning has been a subject of discussion as to its effect on SHIB’s price amongst investors and followers.
Major Token Burn Event Prompts Shiba Inu’s Rally
Shiba Inu, the famous meme coin on Ethereum held a major token burning event just last week on November 21st which definitely reinjected some focus into the digital currency world. During the market instabilities, the SHIB community has been engaged in deliberate coin burning targeting to reduce it’s circulating supply – and this less is best narrative has really worked out.
Shibburn, a platform where SHIB token burns are tracked, recorded an unbelievable increase of 47,872% in terms of burned tokens within the past 24 hours thus resulting into being the end for 28.12 million SHIB tokens.
Determining the Impact of Token Burning Concerning SHIB’s Market Price
As such, the aggressive SHIB token burning approach aimed at inflating SHIB’s value through scarcity has resulted in interesting market responses. One of the wallets, 0x74dceef…665, burned approximately 27,120,000 SHIB tokens. With this, the community driven initiatives had burned down over 410 billion SHIB tokens.
In turn, the latter has fallen by 4% trading at $0.000008323 contrary to expected results regarding Shiba Inu’s price change. It is worth noting that the 24-h trading volume of SHIB soared, touching $145,860,000 to be exact. This is nearly 36.38% up for the last day and probably a breakout point according to crypto market conditions earlier today. The big burning activity that implies a bullish trend for SHIB prices may have unveiled more complex market reactions given the recent dip in its price: leaving many cryptos pondering of what is the actual impact of token burns on their value.