Those who have read my articles know that I am very suspicious of anything that has to do with meme or rare Tokens, the kind that no one knows about, and that although I sometimes use them to do a little scalping, I do not invest in them, which is a very different thing. But the latest news related to Shiba Inu is very encouraging, especially for experienced traders. The coin has seen an impressive increase in its burn rate, which could boost its price in the future.
What is token burning and why is it important? This is a process by which tokens are destroyed or permanently removed from a cryptocurrency, thereby reducing its circulating supply. This can have several benefits, such as increasing scarcity and demand for the remaining tokens, decreasing inflation and oversupply, and improving network governance and security. Burning tokens can be done in different ways, such as sending them to an inaccessible address, using a smart contract that automatically deletes them, or creating a mechanism that burns them based on certain conditions or events. In the case of Shiba Inu, token burning is primarily done through Shibarium, its own Ethereum-based layer 2, which allows for faster and cheaper transactions than the mainnet. Every time a transaction is made on Shibarium, a small amount of SHIB is burned, reducing the total supply of the coin.
According to burn tracker , the Shiba Inu burn rate has skyrocketed by 300% in the past day, reaching 2.03 million SHIB burned. This means that the Shiba Inu community is increasingly using Shibarium for their operations, demonstrating interest and adoption of their scaling solution. Additionally, Shiba Inu's burn rate has also been boosted by recent announcements from the community, which has revealed its plans to release new features and products for its ecosystem. These include KNINE, a liquid staking derivatives token on Shibarium, and SHEboshi, an ERC-404 token, a semi-fungible token that will be used for Shiba Inu NFTs. These developments could generate more activity and demand for SHIB, which in turn could increase token burning and further reduce the supply of the coin.
Token burning can have a positive effect on the price of a cryptocurrency as it creates greater scarcity and value for existing tokens. Reducing supply increases upward pressure on the price as there are fewer tokens available to meet demand. Furthermore, it can also improve investor perception and confidence as it shows the commitment and long-term vision of the developers and the community. By burning tokens, it is shown that this is not an inflationary currency or a scam, but rather a serious and sustainable project.
In the case of Shiba Inu, the burning of tokens could have a significant impact on its price, since it is a coin with a very large initial supply (1 quadrillion SHIB). By burning a portion of that supply, the risk of dilution is reduced and greater demand for SHIB is created. In fact, the price of Shiba Inu has shown an upward trend in recent hours, coinciding with the increase in the burn rate. At the time of writing, the price of SHIB is $0.0000096, which represents a significant increase over the past few days.
We cannot, regardless of the opinion I may have, deny the fact that Shiba Inu is one of the most popular and successful meme coins on the market, with a market capitalization of more than $3.5 billion and a community of more than 1.1 million followers on Twitter. Despite its humorous and satirical origins, the project has proven to have real potential and an ambitious vision, creating a diverse and constantly evolving ecosystem. With the launch of Shibarium, Shiba Inu has taken an important step to improve its scalability and usability, which could attract more users and developers to its platform. Additionally, with the new features and products it plans to launch, such as KNINE, SHEboshi, and Shiba Inu NFTs, the project could expand its offering and generate more value for its community.
However, this does not mean that Shiba Inu is a safe or guaranteed investment. Like any other cryptocurrency, Shiba Inu is subject to market volatility and risks, and its price may be affected by external factors such as competition, regulation, adoption or trends. Additionally, being a meme currency, Shiba Inu also relies heavily on the sentiment and support of its community, which can be unpredictable and changing. Therefore, before investing in Shiba Inu, or any other cryptocurrency, it is important to do thorough research, understand the risks, and have a clear strategy. Don't get carried away by hype or FOMO, and don't invest more than you can afford to lose.
Shiba Inu has surprised the market with its impressive increase in burn rate, which could boost its price in the future. The meme coin has proven to have a strong and growing ecosystem, with Shibarium as its main scaling solution. However, as always, I advise you that as long as possible do not invest in memes and strange things in the crypto ecosystem, there are many relatively good projects that with good judgment you can invest in with a lower probability of risk. Shiba Inu can be an opportunity for experienced and bold traders, but not for those looking for a safe and stable investment. Please remember that Shiba Inu remains a risky and speculative investment, and is not recommended for novice or conservative investors.
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