Shiba Inu (SHIB) has burned over 1.3 billion Tokens in a week, intensifying efforts to reduce supply, but the price continues to decline.
The SHIB community continues to burn Tokens, raising the total number burned above 410 trillion, aiming to increase scarcity for this cryptocurrency. However, the price of SHIB still slightly decreased despite the surge in daily burn rate.
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The SHIB community burned over 1.3 billion Tokens in 7 days, an increase of 2.10% compared to the previous week.
The daily burn rate surged by 4,063% thanks to a transaction from an anonymous whale.
The price of SHIB dropped 3.65% to $0.00001156, indicating that burning Tokens does not necessarily drive the price up immediately.
How many Tokens has Shiba Inu burned in the past week?
Based on official data from the community, over 1.338 trillion SHIB have been sent to dead wallets in the past 7 days, an increase of more than 2.10% compared to the previous week, showing a continuous effort to reduce the circulating supply.
Dead wallets are wallets that cannot be accessed, permanently removing Tokens from the market. To date, the amount of SHIB burned has exceeded 410 trillion Tokens.
The significance of burning SHIB Tokens
According to cryptocurrency expert Dr. Le Quang Huy, burning Tokens helps reduce total supply, creating assumed scarcity, thus supporting potential price increases in the long run if demand remains stable or increases.
Burning Tokens is a method many cryptocurrency projects use to increase the value of their coins in the long term, but it is not a magic solution for immediate price increases.
Mr. Nguyen Van Nam, CEO of Blockchain Consulting Company, 2024
What caused the significant increase in SHIB burn rate in the past 24 hours?
There was a spike of 4,063% in the daily burn rate when a cryptocurrency whale sent over 131.5 million SHIB to a dead wallet in just 24 hours.
This move shows that whales are still actively participating in controlling the supply of SHIB Tokens, supporting the community in building scarcity for the cryptocurrency.
The impact of whales in the SHIB market
Whales often have a significant influence on cryptocurrency market fluctuations. According to a report from ChainMetrics in June 2024, Token movements from whales account for about 45% of the total recent SHIB burn trading volume.
Why did the price of SHIB drop 3.65% despite a large amount of Tokens being burned?
Although burning Tokens helps reduce supply, the price of SHIB still decreased by 3.65% to $0.00001156 due to many other factors such as selling pressure, investor sentiment, and a still large total supply.
In the context of a complex cryptocurrency market, burning Tokens is just a part of a long-term strategy, not the only factor determining price.
The price of Tokens depends not only on supply but also on many other factors such as liquidity, market sentiment, and macroeconomic events, so burning Tokens should be seen as part of a combined strategy.
Mrs. Tran Thi Mai, Cryptocurrency Analyst, June 2024
Expert analysis on Token burning and SHIB price
Analyst Nguyen Van Tuan commented: “SHIB has a total supply of trillions of Tokens, so reducing a few billion Tokens is not strong enough to create a significant price spike immediately.” At the same time, selling orders are still occurring frequently, strongly affecting market prices.
Comparison table of SHIB Token burns over recent weeks
Week Number of SHIB burned (trillion Tokens) Growth rate compared to the previous week (%) Last week 1.31 – Last week 1.34 2.10
Frequently Asked Questions
Does burning SHIB Tokens immediately help the price rise?
Not necessarily. Burning Tokens helps reduce supply but the price also depends on many other factors such as buying power and market sentiment.
What role do whales play in burning SHIB?
Whales hold a large amount of Tokens and can significantly influence the burn rate, as seen in the case of an anonymous whale that just burned 131.5 million SHIB.
What is the total amount of SHIB that has been burned to date?
Over 410 trillion SHIB Tokens have been burned to date, according to official statistics.
Does burning Tokens make SHIB scarcer?
Yes, burning Tokens helps reduce the circulating supply, thereby creating assumed scarcity that can increase long-term value.
What causes the price of SHIB to drop despite an increase in burns?
This is due to strong selling pressure from the market and a large total supply, making the burning effect insufficient to offset.
Source: https://tintucbitcoin.com/shiba-inu-dot-13-ty-shib-gia-on-dinh/
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