- Shiba Inu automate its token burning.
- First test on Puppynet, the testnet for Shiba Inu.
- Price remains sideways but now is at a attractive level for accumulation.
The Shiba Inu team has recently decided to automate the burning of tokens. The automated burning will first be implemented on the puppy net, the test net for Shibarium. The blockchain recently completed 300 million transactions.
If implemented it may lead to a higher token burning which could increase the value of its token. But, will it be enough to help it reach the $0.01% goal? What would be its impact on the price?
How will Automated Burning Work?
The automatically burning will burn a portion of gas fees that is collected from the Shiba Inu transactions. The target of burning as per the community is to take Shiba Inu to $0.01.
Till date, burning of Shiba Inu tokens have been implemented through manual burns by the team. Though the team burnt tokens regularly yet it was not frequent it was dependent on the will of the team.
Automated burn is expected to regularize the schedule and could lead to higher burn rates.
Good Step but Not Enough
Yet we feel that just burning would not be enough to help increase the token value unless the team decides to burn a higher portion of the gas fees. This is because the circulating supply of Shiba Inu still stands at 589 Billion (total supply).
Burning even a few billion tokens every year won’t be enough to take the price of Shiba Inu above $0.01 which has been a major target for the $SHIB community.
Still, burning something seems better than nothing.
A very successful case of burning can be seen in the cryptocurrency UNUS SED LEO which effectively destroyed 2.74% of its total token supply in 2023.
Prominent Burns in the Recent Past
Voice of Crypto has effectively reported all the major token burnings in the recent past.
- On January 10, 2024, Shiba Inu Burnt 9.3 billion $SHIB tokens.
- On December 25, 2023, the team burnt 54 million $SHIB tokens.
- On November 3, 2023, a community led burn eliminated 369 million $SHIB.
- On September 24, 2023, the Shiba Inu community burnt 130 $SHIB million tokens.
- On September 17, 2023, Coinbase-led burn eliminated 30 million $SHIB tokens.
Why Burning it so Important for Shiba Inu?
The creators of Shiba Inu created 1 quadrillion tokens It’s a funny response to Dogecoin. They then released around 410 billion tokens to Ethereum co-founder Vitalik Buterin who promptly burnt those coins.
Still, the cryptocurrency has a massive 581 billion token supply in active circulation and another 8 billion tokens in staking protocols.
To reduce the total number of coins the team has to regularly burn a portion of its gas fee. Burning also helps increase the value of tokens in circulation due to the basic law of demand and supply.
$SHIB Price Analysis
Shiba Inu is one of the few cryptos that have not given a better up move after the Bitcoin ETFs were allowed to trade on January 10, 2024. However, in the last few days it was also one of the few largecap cryptos to have declined lower(6%) than others like Ethereum have declined about 13% in price.
Daily charts show that the RSI in Shiba Inu has gone down below the levels of 40 which is basically the reversal zone in a bull market.
However, crypto trading volumes for Shiba Inu still remain low. This shows that market participation if very low at this stage.
We feel that the prices may remain sideways unless there is some major news in the coming weeks.
We also feel that the current price is good for long term accumulation because the blockchain is the only meme coin with a good developmental activity. The cryptocurrency also has been a favorite of whales for a long time.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.