Key Points
- Shiba Inu burn rate surged by 250% in September.
- 2.4 billion SHIB tokens worth $42,000 were destroyed.
- The largest burn wiped out nearly 2 billion tokens in a single day.
- Retail traders exit as sentiment around SHIB remains negative.
The Shiba Inu burn rate reached a staggering milestone in September, soaring by nearly 250% and resulting in the destruction of 2.4 billion SHIB tokens. This burn, worth roughly $42,000, marks a new peak for the meme-inspired cryptocurrency.
As Shiba Inu works to reduce its circulating supply, the project hopes to drive up the value of its tokens. However, despite these efforts, the broader sentiment surrounding SHIB remains a concern.
🔥🔥🔥 2,378,422,108 $SHIB tokens have been burned in the month of September with 131 transactions. #SHIB pic.twitter.com/5k5hw6jlyH
— Shibburn (@shibburn) October 1, 2024
2.4 Billion SHIB Tokens Burned
Data from Shibburn, a popular platform that tracks SHIB token burns, revealed that 2,378,422,108 SHIB tokens were burned over 131 separate transactions throughout September.
The most significant burn took place on September 26, when nearly 2 billion tokens were permanently erased from the circulating supply in one transaction.
This major burn event alone accounted for the lion’s share of the total tokens burned for the month.
The Shiba Inu burn rate is a central strategy for the project to reduce its massive supply of 1 quadrillion tokens. Since its launch, approximately 410.73 trillion tokens have been burned, driven by a combination of automated burns and manual contributions from the community.
One of the largest contributors to SHIB’s burn was Ethereum co-founder Vitalik Buterin, who received a substantial portion of the total supply and burned it soon after.
This token-burning mechanism is designed to create scarcity, potentially driving demand and pushing prices higher as supply shrinks.
Can the Burn Strategy Boost Prices?
The aggressive increase in Shiba Inu’s burn rate is a clear attempt to reduce supply and boost the cryptocurrency’s price.
By permanently removing tokens from circulation, SHIB hopes to create a deflationary effect, allowing its price to increase over time. However, this approach only works if demand remains steady or grows.
The burn strategy has had some impact on SHIB’s price, as the cryptocurrency saw a 21.9% price jump over the past 30 days. However, analysts believe the burn mechanism alone may not be enough to sustain long-term growth.
The overall sentiment around Shiba Inu burn rate and its broader ecosystem remains mixed, with growing challenges among smaller retail investors.
Fading Retail Interest and Negative Sentiment
Blockchain analytics firm Santiment recently reported that Shiba Inu’s burn rate surge has coincided with a drop in social media discussions and engagement.
While larger investors with holdings of more than 1 billion SHIB still maintain their positions, retail traders are exiting the market.
Wallets with less than 1 billion SHIB now hold their lowest share of the supply since November 2022.The report also revealed that social sentiment surrounding SHIB has been negative.
After a year of declining retail interest, fewer traders are participating in the SHIB ecosystem, with discussions around the token falling sharply since late July.
This trend raises questions about whether the Shiba Inu burn rate will be enough to counterbalance these market challenges.
As SHIB continues its aggressive burning strategy, the future of the project will depend heavily on retail interest and broader market conditions.
Without renewed demand, the ongoing token burn may not be sufficient to reverse the current negative sentiment.
