As a seasoned crypto investor with years of experience under my belt, I can confidently say that Shiba Inu (SHIB) has been one of the most intriguing investments in the meme coin niche. The burning mechanism implemented by the team, coupled with the progress made by Shibarium, has undeniably contributed to its impressive year-on-year growth of 115%.
I remember when SHIB was first introduced, boasting an eye-watering one quadrillion tokens. Fast forward a few years, and we’ve seen significant reductions in the circulating supply due to Vitalik Buterin’s charitable acts and the community-driven burning mechanism. These efforts are indeed making the meme coin more scarce and potentially more valuable.
It’s interesting to note that while the USD equivalent of the burned tokens might not seem like much, it adds up over time, especially when you consider the 100% increase in burn rate within the past 24 hours alone!
The booming cryptocurrency market and the meme coin niche have played their part in SHIB’s price rally. But let’s not forget about Shibarium, which has been making significant strides. With over 700 million transactions processed last year and 2 million wallet addresses, it’s clear that this layer-2 scaling solution is a game-changer for the Shiba Inu ecosystem.
So, if you ask me whether I think SHIB is worth keeping an eye on? Absolutely! Just remember, investing in cryptocurrencies can be as unpredictable as a dog chasing its tail, but with SHIB’s unique features and community support, it could very well be the next big thing. As they say, “The bigger the dog, the harder the bark!
TL;DR
- Shiba Inu’s circulating supply was reduced last year due to the billions of burned tokens.
- SHIB’s price is up 115% on a yearly scale, thanks to numerous potential factors, such as the burning mechanism, Shibarium’s progress, and others.
The Burning Goes on
Originally, this well-known meme cryptocurrency boasted a staggering total of one billion tokens. Upon its launch, 50% of the supply was allocated to the decentralized exchange Uniswap for liquidity purposes, while the remaining half was directed towards Ethereum‘s co-creator, Vitalik Buterin.
Later on, the computer programmer generously contributed billions of Shiba Inu (SHIB) coins to the India COVID-Crypto Relief Fund and other charitable organizations. Subsequently, he destroyed or “burned” the remaining 410 trillion SHIB tokens, which were worth around $6.7 billion at that time.
Vitalik Buterin’s initiative sparked an immediate surge in the price of the meme coin themed around dogs, as economic principles suggest that when the supply is decreased without a decline in demand, it typically results in a price increase.
In the year 2022, the Shiba Inu team implemented a token burning mechanism as an option for community members to send their tokens to an inactive wallet. A recent update revealed that approximately 44.6 billion SHIB, valued at over $1 million, were permanently removed from circulation throughout the year 2024.
Although the value of the stash in USD may not seem substantial (given that it spans a period of 12 months), persistent work in this area could make the meme coin increasingly rare, potentially increasing its worth.
Simultaneously, the burn rate has approximately doubled over the last 24 hours, leading to around 1.9 million SHIB being transferred to an empty address.
SHIB Price Outlook
Cutting back on the available supply of the meme coin in 2024 might be a contributing factor for its price surging by an impressive 115% from January 1, 2024 to the start of 2025.
Additional factors are the thriving crypto market, specifically the meme coin sector, and the ongoing development of Shibarium.
Last year, the layer-2 scaling solution designed to nurture the Shiba Inu ecosystem achieved several significant milestones. By Christmas, the total transactions processed on the protocol surpassed a staggering 700 million. Interestingly, before that point, the number of unique wallet addresses had already surpassed the 2 million mark.
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2025-01-02 15:26