Shiba Inu (SHIB) has burned over 125 million SHIBs in the past few days, beincrypto.com reports. In other words, over 125 million Shib tokens have been disposed of in the past few days. In total, 410 trillion coins were destroyed, which represents approximately 41% of the total SHIB supply.
Is burning enough?
The shedding of over 5,5 million coins in the past 24 hours is not a new phenomenon for SHIB. Tokens are regularly destroyed to reduce the number in circulation. This is a common maneuver to raise the prices of the asset. Initially, 500 trillion tokens were sent to Ethereum co-founder Vitalik Buterin, while the other 500 trillion were locked into UniSwap.
The token glut in circulation was dragging the prices of the meme-based asset down. Burning does not mean a real incineration, but involves sending the coins to a “dud” wallet address to prevent them from being spent again.
According to a Yahoo Finance report, the burning of a substantial amount of tokens was scheduled for mid-December 2021. On December 26, Bigger Entertainment's Steven Cooper organized the burning of 239 million SHIB tokens. As a result, the price of the meme coin went up briefly. Combined combustion of tokens is beneficial as it involves fewer gas costs than burning single tokens. Etherscan reported that 125 million SHIB tokens have been burned in the past few days.
However, according to Coingecko, token prices haven't gone up that much. Since December 8, 2021, prices have been falling. Even after the decimation of 410 trillion coins, which represents 41% of the total supply of SHIB, the values have not increased.
Equal DOGE? SHIB still has a long way to go
The price was on a downtrend as of December 8, 2021, at around $ 0,00003898, and at the time of writing it is at $ 0,00003294. SHIB experienced a massive price surge in October 2021, hitting an all-time high on October 28, 2021, of $ 0,00008616.
SHIB is still far behind its bigger cousin, Dogecoin, with 132 billion tokens in circulation. However, the first step in closing this gap was taken on August 7, 2021, when the developers of ShibaSwap announced a combustion plan to reduce the supply of $ SHIB and $ LEASH. The move was widely received on social media by SHIB investors.
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