A shib burn tracker has disclosed that over 22.2 billion SHIB tokens worth $667 million were burnt across 497 transactions.
In April, Shiba Inu’s developers teamed up with Ryoshi Vision to launch Shiburn, a burning mechanism. This mechanism rewards community members who use the ShibaSwap exchange platform to burn the protocol’s native SHIB tokens.
A novel SHIB token burning mechanism has been developed
Over the last 24 hours, the burn rate has been 43.73%, totaling 410,364,582,740,177. Shib tokens have been burnt since the initial token supply as of the time of writing.
Cryptocurrency is burnt by sending a portion of the existing supply to a ‘burn address’ or ‘zero address,’ which is a ‘dead wallet’ thereby removing it from circulation. The private key of these wallets is not accessible to anyone, so crypto tokens sent to this address cannot be retrieved.
Recently, Terraform labs proposed to burn nearly 1 billion UST (roughly $690 million) in the community pool while increasing the Base Pool of LUNA available to 100 million, which in turn increases minting capacity to over $1 billion.
This will hasten the outflows of UST from the system, bringing it closer to its peg while lowering the price of LUNA. Burning tokens is akin to a company buying back its shares. In this way, the company “returns the value” to its shareholders. To achieve the same goal, crypto projects burn their tokens.
Shiba Inu (SHIB) lost over 60% of its value, price dips
Following the ongoing market collapse, the second-largest memecoin in the world witnessed a huge dip in May. The meme token lost more than 60% of its value in the first week of May.
The indicators point to a rough short-term future for SHIB, with the price expected to retest $0.000017 before bouncing.
Meanwhile, Shib’s daily relative strength index (RSI) has fallen below 30, indicating that the stock is oversold that further catalyzes a short-term rebound. Shib’s returns have been 50% below zero this year, making it one of the worst performances by top-performing cryptocurrencies in 2022.