Shiba Inu enthusiasts have reason to rejoice as the project’s team confirmed plans for a massive SHIB token burn. This initiative aims to reduce the circulating supply of SHIB, potentially influencing its price positively.
Lucie (@LucieSHIB), a SHIB marketing expert shared the news on X, revealing that the team has allocated 40 Ethereum (ETH) specifically for incinerating SHIB tokens, which is approximately $157,349.
🔥 $SHIB burns incoming!
40 ETH collected for the burn. Stay tuned! 👀
— 𝐋𝐔𝐂𝐈𝐄 | SHIB.IO 🧜🏼♀️ (@LucieSHIB) March 8, 2024
Read Also: One Wallet Burns Over 207 Million Shiba Inu Amid SHIB Price Fall
Details of the SHIB Burn
While Lucie’s announcement lacked specifics of the burn process, speculation suggests a possible connection to the ongoing Shibarium-powered burns. Since December 2023, the Shibarium team has been strategically utilizing a portion of the network’s gas fees to execute SHIB burns. This strategy has demonstrably reduced the circulating supply, with five burns completed to date, resulting in the removal of over 40 billion SHIB tokens.
In January, Shiba Inu’s official communication channels confirmed that they had burned nearly 200 ETH through Shibarium. Interestingly, despite a recent surge in total transactions on the Shibarium network, no burns have been initiated since January.
This has led some within the Shiba Inu community to believe the team might be strategically waiting to launch the Shibarium auto-burn portal.
The burn portal is currently being tested on the Puppynet testnet and will allow automated SHIB burns triggered by specific conditions within the Shibarium protocol. One such trigger could be the accumulation of $25,000 worth of BONE, Shiba Inu’s ecosystem governance token.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Shiba Inu Path to $0.01: Implications Of Burning 50% Of SHIB Circulating Supply
Potential Impact of the Upcoming Burn
With the confirmed allocation of 40 ETH for the SHIB burn, $157,349 will translate to 4.61 billion SHIB at the current price of $0.00003412. While this figure might seem insignificant compared to the vast circulating supply of 582.42 trillion SHIB shown on Shibburn, consistent burns of this nature can contribute to a gradual reduction in overall supply.
This, coupled with rising demand, could introduce a deflationary effect, potentially influencing the price of SHIB favorably in the long run.
Shiba Inu’s Positive Momentum
The news of the upcoming SHIB burn coincides with a period of significant growth for Shiba Inu. The meme coin is currently up 8.7% over the past 24 hours and 162.9% over the past week. Thanks to the significant rally that sent Bitcoin to a new all-time high, SHIB is up 213.49% over the past month.
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