SHIB Burn Rate Drops to Zero After 6,153% Surge, Raising Questions About Viability of Deflationary Strategy
- DDDOriginal
- 2024-11-06 00:06:13816browse
This abrupt stop follows a week of intense activity, marked by a staggering 6,153% surge in the burn rate, according to data from Shibburn.
Cryptocurrency SHIB has seen a dramatic shift in burning activity, with the burn rate coming to a complete halt. This follows a week of intense burning, where an incredible 6,153% surge was recorded.
According to data from Shibburn, the last burn transaction occurred over 24 hours ago. This marks a stark contrast to the previous seven days, which saw a total of 5.76 billion SHIB tokens removed from circulation.
The rapid spike in burning activity was largely driven by a single event on Nov. 1, where five separate transactions sent a total of 5.6 billion SHIB tokens to inaccessible wallets, effectively burning them.
Following a robust October, where 6.1 billion SHIB were burned across 105 transactions, these efforts are part of a wider community-led initiative to reduce the circulating supply of SHIB, aiming to increase the token’s scarcity and, theoretically, its value.
However, despite the recent flurry of burning, the impact on the overall circulating supply remains marginal. Data from Shibburn indicates a total supply of 589,262,937,488,938 SHIB, mirrored by the circulating supply, highlighting the substantial challenge faced by proponents of this deflationary strategy.
This stagnation in burning raises questions about the long-term viability of relying solely on community-driven efforts to significantly impact the SHIB supply.
The sudden drop to zero burns is unusual, even considering the inherent volatility of SHIB’s price. While community involvement forms the backbone of the burning mechanism, even minor price fluctuations can influence the number of tokens burned.
The current lull adds another layer of uncertainty to SHIB’s outlook.
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