The team behind the Shiba Inu ecosystem is planning a significant burn of SHIB tokens, as they have gathered 40 Ethereum (ETH) to initiate the burn in the near future. This move could potentially remove approximately 4.64 billion SHIB tokens from circulation.
Lucie, Shiba Inu’s marketing expert, made the announcement about the planned burn in a recent post. The team has been able to amass 40 ETH, valued at $155,720, specifically for the purpose of incinerating SHIB tokens in the coming days.
While Lucie’s announcement did not provide detailed insights into the upcoming burns, investors speculate that this move may be connected to the ongoing Shibarium-powered burns.
It is important to note that since December 2023, the Shibarium team has been systematically burning large quantities of SHIB tokens using a portion of the network’s gas fees. So far, they have executed five burns, effectively eliminating 43 billion SHIB tokens from circulation, as reported by Crypto News Flash.
The most recent burn took place on January 9, during which 9.35 billion SHIB tokens were removed from circulation. Shiba Inu’s official Twitter account also confirmed that the Shibarium team had utilized nearly 200 ETH for this burn.
However, despite an increase in total transactions on the network, the team has not conducted any Shibarium-powered burns since the fifth one. Speculation within the community suggests that the Shiba Inu ecosystem team may be waiting for the deployment of the Shibarium burn portal, which is currently undergoing extensive testing.
The protocol will automatically burn SHIB tokens once Shibarium fulfills specific conditions, such as accumulating $25,000 worth of BONE.
Now, let’s explore the potential impact of the 40 ETH burn on the total number of SHIB tokens. With each ETH priced at $3,893, the total value of the 40 ETH amounts to $155,720. At the current trading price of Shiba Inu, which is $0.00003356, the calculation reveals that if the team were to execute the SHIB burn with all 40 ETH right now, a total of 4,640,047,675 (4.64 billion) tokens would be removed from Shiba Inu’s circulating supply.
Although this amount may seem insignificant compared to the vast circulating supply of 589.29 trillion tokens, such burns have the potential to strengthen Shiba Inu’s ongoing upward trend by introducing a modest deflation amid increased demand.
At the time of writing, SHIB has experienced a 7.87% surge in the last 24 hours, reaching $0.00003356. Furthermore, the token has achieved impressive gains of 160.64% over the past week and 275% over the previous 30 days.
