A recent announcement from Shibburn, a well-known tracker monitoring the movement of Shiba Inu (SHIB) tokens, highlighted a significant achievement by the SHIB community. Within the last 24 hours, an impressive volume of SHIB tokens was permanently removed from circulation by transferring them to inaccessible “dead” wallets. This move reflects the community’s ongoing commitment to reducing the coin’s circulating supply and enhancing its long-term value.
In a parallel development, an X account dedicated to SHIB updates launched a poll calling for urgent action to scale up the burning process. The poll suggests eliminating between 30% and 90% of the existing token supply to accelerate SHIB’s journey toward becoming a scarcer and potentially more valuable asset.
Burn Rate Surges Over 300%
Shibburn’s data revealed a substantial spike in the burn rate of SHIB tokens, with an increase exceeding 300% within just one day. This surge was primarily driven by the destruction of 24,609,003 SHIB tokens during this period, highlighting the community’s active participation in burning efforts.
The two largest transactions that contributed to this remarkable burn involved sending 17,220,462 and 4,635,583 SHIB tokens, respectively, to non-retrievable blockchain addresses. These transfers underscore the effectiveness of coordinated community initiatives in driving token reduction.
HOURLY SHIB UPDATE$SHIB Price: $0.00002372 (1hr -0.06% ▼ | 24hr -2.13% ▼ )
Market Cap: $13,977,981,987 (-1.97% ▼)
Total Supply: 589,257,014,659,157TOKENS BURNT
Past 24Hrs: 24,609,003 (300.97% ▲)
Past 7 Days: 89,141,480 (60.82% ▲)— Shibburn (@shibburn) January 11, 2025
In addition to daily statistics, Shibburn shared data regarding weekly burn performance. Over the past seven days, the community managed to incinerate a staggering 89,141,480 SHIB tokens, marking a 60.82% weekly increase in burn activity.
This week’s burn totals equate to nearly four times the average daily burn, reflecting a significant step forward in the broader burn campaign. As it stands, approximately 584.19 trillion SHIB tokens are circulating in the market, while over 5 trillion have been locked in staking.
Community Pushes for Greater Burn Action
Meanwhile, the SHIB-centric X account @cryptoshibs suggested in a tweet that reducing 90% of SHIB’s supply could trigger a monumental price surge, potentially sending the token “to the moon.” The account accompanied its suggestion with a poll, allowing users to vote on whether the SHIB development team should aim to burn 30% or 90% of the supply.
However, in response to growing community pressure, SHIB’s marketing lead Lucie and lead developer Shytoshi Kusama clarified that the team has no direct control over the circulating supply or the pace of burns. They explained that the only sustainable way to boost token reduction is by increasing the utility of Shibarium, the project’s Layer-2 blockchain network.
Shibarium employs BONE gas fees, which are partially used to automate the burning of SHIB tokens—a system introduced last year to support ongoing burn efforts. By tying the SHIB burn rate to the activity on Shibarium, this model incentivizes ecosystem growth while gradually decreasing the circulating supply of SHIB tokens.
Implications of Reducing SHIB Supply
The potential reduction of the SHIB supply could significantly impact the token’s market dynamics.
While a moderate reduction could increase scarcity, potentially leading to a gradual price appreciation as demand remains steady or grows due to ecosystem developments, a large-scale supply reduction could result in heightened volatility as speculative trading intensifies. Short-term traders might drive prices up or down unpredictably, depending on market sentiment.
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The perception of a decreasing supply could generate bullish sentiment among investors, attracting new participants and retaining existing ones. A 90% burn, in particular, might reinforce the community’s belief in SHIB’s long-term potential.
If Shibarium and related projects become widely used, the reduced supply could align with increased demand for SHIB tokens within the ecosystem (e.g., staking, transactions), supporting price growth sustainably.
Also, a 90% supply cut could reduce liquidity in the market, potentially making it harder to execute large trades without significantly affecting the price. This could pose challenges for institutional investors or whales.
A reduction in SHIB supply, whether by 30% or 90%, would likely increase scarcity and influence market behavior. However, its success in driving long-term value depends on continued ecosystem utility, such as Shibarium adoption, and maintaining a balance between supply reduction and market liquidity.
To date, official updates indicate that the SHIB team successfully burns an estimated 300 million tokens monthly through these mechanisms. Although the process may seem gradual, the team emphasized that utility-driven burns are a more scalable and consistent approach to achieving the community’s long-term goals for SHIB token scarcity.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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