Shiba Inu (SHIB) is one of the crypto projects with a burning mechanism. This means that during certain transactions, a portion of the tokens is sent to a “dead wallet”. The more actively the network is used, the fewer SHIB are in circulation. This makes the digital currency scarcer and, theoretically, more valuable over time.
An impressive year for token burning
Looking at the past year, it is clear that the Shiba Inu community has burned an impressive amount of tokens. According to data published by analytics platform Shibburn on X, more than 44.6 billion Shiba Inu tokens were burned in 2024. In December 2024, during the quieter holiday season, the burn was relatively modest, with only 2.67 billion SHIB spread across 143 transactions. The total amount of tokens destroyed represents an estimated value of 991,090 USD.
Disappointing influence on the price
Despite the burning of nearly $1 million in tokens, many members of the Shiba Inu community are not impressed. This amount is negligible compared to the memecoin’s total market capitalization, which is more than $469 million at the time of writing. Last year’s burns only removed about 0.2% of the total supply from circulation, resulting in an almost negligible impact on the SHIB price.
The Future of Shiba Inu
According to Shiba Inu’s lead developer, Shytoshi Kusama, burns alone are not enough to address the ecosystem’s challenges. He stresses the importance of mainstream adoption and practical applications. Although it is theoretically possible to burn 99% of tokens, Kusama sees broad usability as the key to success. He said the team is working hard on new developments to be unveiled in 2025.
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