Burning Coins
Cryptocurrency burning is a mechanism used by cryptocurrency projects to reduce the circulating supply of tokens, potentially increasing their scarcity and therefore their potential value. This process is typically done by sending a number of tokens to a burn address, which is an inaccessible digital wallet.
The most notable cryptocurrencies currently experiencing active burns are:
Shiba Inu (SHIB): This coin has seen a significant increase in its burn rate, rising by 320% in 24 hours, resulting in over 10.31 million tokens being burned in a single day.
Dogecoin (DOGE): Periodic burns are carried out to reduce the circulating supply of the coin.
Solana (SOL): Regular burns are carried out as part of its inflation mechanism.
Ethereum (ETH): After the EIP-1559 update, a portion of the transaction fees are burned, reducing the circulating supply of Ethereum.
It is worth noting that burn operations are not common for all cryptocurrencies, and vary from one project to another based on their strategies and goals.