Shiba Inu has seen a significant increase in the burning of its SHIB tokens, with millions of tokens being destroyed as the community pushes for a much-needed price rally.
Despite a 2.6% loss in the past day, technical indicators for SHIB have mostly remained neutral. However, whales are selling off the token, creating pressure on exchanges.
On June 5, over 4.8 million tokens were burned in seven transactions, marking a 3,894% increase in the burn rate, according to reports from Shibburn.
While the community welcomed the spike in the burn rate, the impact on SHIB’s price has been limited. The 4.8 million tokens burned were only valued at $122, a small fraction of the $14.78 billion total market cap.
Despite this, the Shiba Inu community continues to view token burns as crucial for a price increase. A total of 139 million SHIB tokens have been burned in 295 events, but at this rate, it would take over 300,000 years to burn 90% of the circulating 589 trillion tokens.
Burning tokens alone may not be the key to SHIB’s price surge, but when combined with other strategies, it could have an impact. Lead developer Shytoshi Kusama mentioned a grand plan aligning with Vitalik Buterin’s principles for a successful meme coin project.
Competition for Shiba Inu comes from various new meme coins, particularly those on Solana like WIF and BONK, which have gained popularity. Despite this, SHIB remains strong, particularly in markets like India where it is the most popular crypto, surpassing even Bitcoin and Ethereum.
In the past day, many meme coins, including BONK, FLOKI, BOME, WIF, and PEPE, experienced losses, with FLOKI being the only one to record gains in the past week. Investor interest remains high in PEPE, with a trading volume of $1.06 billion in 24 hours in May.