- The SHIB token has a unique relationship between its burn rate and the price of Shiba Inu.
- The increase in burn rate of the SHIB token also leads to a decrease in overall supply, thereby increasing the token's value.
- The launch of the Layer 2 protocol, Shibarium, is expected to lead to a significant increase in the burn rate of the SHIB token.
- The performance of the Ethereum network and the value of Ether (ETH) also have an impact on the value and burn rate of the SHIB token.
The SHIB token, the second most popular meme coin in the industry, has once again seen a boost in its burn rate due to an increase in the price of Shiba Inu. This trend has become increasingly apparent within the SHIB community and has had a positive impact on the burn rate, which had seen a disappointing end to 2022.
The popularity of meme coins has risen in recent years, with Dogecoin, Shiba Inu, and SafeMoon all becoming headlines within the industry. However, none seem to boast the community that is present in the SHIB Army. This community has shown a unique relationship between the SHIB burn rate and the Shiba Inu price.
According to Data, the burning of SHIB has nearly doubled within the first month of 2023. Specifically, more than 1 million SHIB tokens have already been burned in January's opening weeks, which far exceeds the 540,000 SHIB burns that took place over the course of December. This coincides with the price of Shiba Inu raising by 17.3% during the same time period, leading to the recoup of losses that occurred throughout December of 2022.
Moreover, the burn rate of the popular SHIB token has surged by over 900% overnight. According to data provided by the Shibburn website, the rate of removing SHIB tokens from the circulating supply has grown by nearly 1,000% in the past 24 hours, while the price of Shiba Inu is close to removing another zero and going up.
The overall destroyed amount of SHIB from the total supply equals 410,384,480,999,999 meme coins, which is almost half of what remains in circulation now. The SHIB community widely believes that the burn rate of Shiba Inu will jump high when the Layer 2 protocol, Shibarium, is launched. Shibarium is set to allow users to conduct a greater number of transactions without congestion and lower the fees significantly. Developers plan to convert a percentage of transaction fees into SHIB and burn them.
Another important aspect to consider is the impact of the burn rate on the overall supply of the token. As the burn rate increases, the overall supply of the token decreases, which can lead to an increase in the token's value. This is because as the supply decreases, the demand for the token increases, driving up its price. Additionally, burning tokens can also help to mitigate the effects of inflation on the token's value.
Furthermore, it's worth noting that the SHIB token follows a unique tokenomics model known as the "infinite supply" model, in which new tokens are continually minted and added to the overall supply. However, the burn rate, as well as the overall supply, is continuously decreasing due to the token's unique tokenomics model.
It's also worth mentioning that the SHIB token is built on the Ethereum blockchain and it's important to note that the token's value and burn rate are also affected by the overall performance of the Ethereum network and the value of Ether (ETH). As the Ethereum network and the value of ETH increase, the value and burn rate of SHIB also tend to increase.
The SHIB token, with its unique tokenomics model and strong community, has demonstrated an interesting trend in relation to its price and burn rate. As the burn rate increases, the overall supply of the token decreases, leading to an increase in the token's value. With the launch of the Layer 2 protocol, Shibarium, the SHIB community expects trillions of tokens to be removed from circulation, which could lead to even greater increases in the token's value and burn rate.
In conclusion, the development of SHIB burn rate and Shiba Inu price increase in January is more evidence of the interesting trend within the SHIB token. With 2023 getting off to a positive start throughout the industry, Shiba Inu seems to stand to benefit greatly if the pattern continues.
