The following content does not constitute the opinion of BeInCrypto and should not be construed as financial advice
Shiba Inu, a prominent Ethereum-based altcoin, has been making waves in the crypto market, particularly with its recent token-burning activities.
The Shiba Inu community has burned over 46.14 million SHIB tokens in just one day. This action is part of a larger effort, with over 410 trillion SHIB tokens already burnt from the initial supply.
Why is Shiba Inu Burning All These Tokens?
The primary objective of burning Shiba Inu tokens is to create scarcity, so the value of the remaining tokens increases. By reducing the circulating supply, the burn rate attempts to counteract any inflationary effects associated with increased token minting or distribution. This strategy appears to be aligning with recent market trends.
Coinciding with these burning activities, Shiba Inu’s price has seen a notable surge. The SHIB price rose 8.55% over the past 24 hours, reaching $0.000009052, and experienced a substantial weekly surge of 15.12%. This increase in value was accompanied by a 23% rise in trading volume, now standing at 347 million. The correlation between the token burn and the price surge indicates the impact of scarcity on market perception and value.
Shibarium, the Shiba Inu Layer 2 network, has decreased activity, with a 38% reduction in the number of blocks created on the network. Despite this, SHIB’s price continues to attract attention from crypto market enthusiasts, showcasing the token’s resilience and adaptability in the volatile crypto market.
The recent token-burning initiatives by the Shiba Inu community have been instrumental in the coin’s current price rally, demonstrating the strategic impact of supply reduction in the cryptocurrency market. As Shiba Inu continues to evolve with initiatives like Shibarium, it remains a key player to watch in the dynamic world of meme coins.
Ripple Effect on Other Memecoins
Shiba Inu’s significant token burn and consequent price rally could potentially set a precedent for other memecoins. This action may encourage similar strategies across the memecoin ecosystem.
- Imitation Strategy: Other memecoin developers might replicate Shiba Inu’s token-burning strategy, aiming to create scarcity and drive up token value.
- Investor Perception: Investors and traders witnessing Shiba Inu’s success might turn their attention to other memecoins with similar strategies, leading to increased trading volumes and potentially higher prices.
- Market Sentiment: The success of a prominent memecoin like Shiba Inu can positively influence overall market sentiment towards memecoins, attracting more investors to this niche market.
One Token Stands to Benefit From Shiba Inu’s Burn
Meme Moguls (MGLS) offers a unique meme-based digital asset space proposition. Unlike typical memecoins, Meme Moguls is developing the world’s first meme-backed stock market/exchange. This innovative platform could attract a new segment of investors interested in meme culture and digital asset trading.
The project is in its beta presale stage at $0.0019. As an incentive, Meme Moguls will reward one lucky user with a $10,000 prize at the end of each presale phase.
Visit Meme Moguls
This article is content and does not represent the views or opinions of BeInCrypto. While we adhere to the Trust Project guidelines for unbiased and transparent reporting, this content is created by a third party and is intended for promotional purposes. Readers are advised to verify information independently and consult with a professional before making decisions based on this content.
Read the full article here