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The Shiba Inu crypto project team has removed 6,878,412 SHIB coins from circulation. The activity of burning crypto assets has surged by 44.45%, according to data from the Shibburn platform, which monitors transactions related to the reduction of the meme coin’s supply.
Currently, there are 585.4 trillion SHIB in circulation, while the total number of burned coins has reached 410.7 trillion. There are 3.1 trillion SHIB staked. Given that approximately half a quadrillion SHIB is available on the market, the deflationary mechanism of token burning may appear less effective— even millions of destroyed coins have a minimal impact on the overall supply and price of the altcoin.
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The burning of tokens aims to decrease the total supply of the meme coin, supporting its price growth through reduced availability and increased demand. It is believed that the fewer tokens available to traders, the higher the value of the crypto asset. Developers destroy tokens by sending them to inaccessible addresses, from which the coins cannot be returned to circulation. This action demonstrates to the community that the team is actively working to maintain the token prices and does not intend to flood the market with their reserves. Token burning often triggers short-term price increases, which may be fueled by investor expectations rather than actual coin scarcity.
The recent SHIB burn coincided with a short-term increase in the price of the Shiba Inu cryptocurrency. Over the course of a day, the price rose by 5% to $0.00000622, and the market capitalization of SHIB also grew by 5% to $3.6 billion. However, the destruction of tokens does not always lead to price increases. Previously, the Shiba Inu team had conducted similar operations without a significant market response. Over the past year, the meme coin SHIB has lost about half of its value.
In January, 3.24 million SHIB were removed from circulation in two transactions, and the token burning activity dropped by 88%. Earlier, the lead developer of Shiba Inu, known by the pseudonym Shytoshi Kusama, referred to the destruction of SHIB as a futile endeavor— as long as the altcoin does not find a real use case on its own.
