KEY POINTS

  • Shiba Inu burning initiative saw a massive spike over the weekend
  • The rate further surged Monday
  • SHIB was trading down 3.32% at $0.00001231

Shiba Inu holders anticipate a potential Shiba Inu price rally after the burn rate of the community went berserk as it showed an unbelievable surge over the past few days.

The Shiba Inu burn rate surged nearly 889% Sunday morning and listed 64,986,148 SHIB, the majority of which came from a single transaction that sent 50,704,939 to a dead wallet. It was an impressive burn rate, which saw an eight-fold spike compared to the 8,369,636 SHIB burned Saturday.

The bulk of the burned SHIB Sunday was courtesy of game developer Travis Johnson, who goes by the Twitter handle @shib_superstore. Johnson uses an Amazon affiliate program to send SHIB to dead wallets, which allows him to purchase Shiba Inu tokens with the commission he earns and then burns them.

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Shiba Inu Tokens Burned in Official Shib Burn Portal shibarmy.co/Shiba Army Official Website

Interestingly, the burn rate continued to surge Monday with data from Shibburn revealing a 2936.73% increase. Almost 200 million SHIB were sent to dead wallets at the time, which was made possible through the collective efforts of various whales.

The burn rate is anticipated to surge further with the launch of more burning portals soon.

Last year, Shiba Inu pseudonymous lead developer Shytoshi Kusama mentioned that "ALL NEW PLATFORMS will have Shib burns," underlining that the upcoming initiatives like ShibaSwap V2, Shibarium and Shibanet will have burning mechanisms.

Kusama also addressed the fact that "Shiba Eternity" and other upcoming games would not have a burning mechanism, noting that "there is a reason for that."

The lead developer mentioned earlier this year said that they were looking forward to "consistent platforms and products that burn yearly.Recurring."

Burning tokens or sending them to dead wallets can potentially spike the price of tokens that are still in circulation based on the principle of supply and demand. If there is a lesser number of digital assets available to investors, then there is a demand for it, commanding a higher price as it is traded.

As of 11:02 p.m. ET on Tuesday, SHIB was trading down 3.32% at $0.00001231 with a 24-hour volume of $458,983,879.19, based on the latest data from CoinMarketCap.

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