How SHIB’s January Token Burn Could Affect Its Future Value
Shiba Inu (SHIB) is a popular cryptocurrency trading that has attracted a lot of attention with its token burn events. A token burn is a process of permanently removing a certain amount of tokens from circulation, which can affect the supply and demand of the token and its price. In this article, we will look at the details of the token burn that happened in January 2024, how it compares to previous months, and what it means for future value.
How Many SHIB Tokens Were Burned in January 2024?
In January 2024, the Shiba Inu project burned about 9.9 billion tokens, which was equivalent to about $88,348 at the time. This was a significant reduction of the token’s circulating supply, which could have a positive impact on its price.However, this was not the largest token burn that as seen. In December 2023, the project burned a whopping 36 billion tokens, which was mainly driven by the transactions on the Shibarium layer 2 scaling solution.Shibarium is a decentralized platform that allows users to create and use smart contracts, decentralized applications, and other features on the Shiba Inu network. Shibarium uses as its native token and burns a portion of it as gas fees for every transaction. This creates a constant and automatic token burn mechanism that reduces the supply of over time.
What is the Total Amount of SHIB Tokens Burned So Far?
According to the project’s website, the total amount of tokens burned so far is more than 410.7 trillion, which is about 41% of the initial supply of 1 quadrillion. This means that there are only about 589.3 trillion tokens left in circulation, which makes the token more scarce and valuable. The project also has the plan to automate the token burn process on Shibarium, which will be tested on Puppynet before launching on the main net. This will make the token burn more systematic and efficient.
How Does the Token Burn Affect SHIB’s Price?
The token burn is one of the factors that can influence the price,but it is not the only one. The price of also depends on the demand and sentiment of the market, the innovation and development of the project, the competition and regulation of the industry, and other external events. Therefore, it is not possible to predict the exact effect of the token burn on price, but we can analyze some possible scenarios.One scenario is that the token burn will create a supply shock, which will increase the demand and price. This is based on the economic principle of scarcity, which states that the lower the supply of a good, the higher its value. This could also create a positive feedback loop, where the higher price of will attract more users and investors, which will increase the transactions and burns on Shibarium, which will further reduce the supply and increase the price. Another scenario is that the token burn will have a negligible or negative effect on price. This is based on the assumption that the supply of is still too large to make a significant difference, or that the demand and sentiment of the market are too weak to support a higher price. This could also create a negative feedback loop, where the lower price of will discourage users and investors, which will decrease the transactions and burns on Shibarium, which will further increase the supply and decrease the price.
Disclaimer:
This article is not intended to provide financial or investing advice. The information in this article is the author’s opinion only and should not be taken as trading or investing recommendations. We do not guarantee the accuracy, completeness, or reliability of this information. The cryptocurrency market is volatile and unpredictable. Any investor, trader, or regular crypto user should do their own research and be aware of the risks and regulations before making any investment decisions.
With increased scarcity and demand, the price of Shiba Inu tokens may appreciate.
9.9 Billion Token Out Of Circulation
the network may burn trillions of tokens yearly.
No, Shiba Inu will not be able to reach $1 by 2030.