If you are known in the world Cryptocurrencies and Shiba Inu (SHIB), you are probably familiar with the term “token burning”. This is a method of intentionally destroying tokens in order to permanently remove them from circulation. Recently, Shiba Inu has shown a surprising increase in burn rate, which has piqued the interest of the SHIB community. But what is behind this sudden peak and what could it mean for the price?
SHIB’s burn rate skyrockets
Accordingly Data from Shibburn, the official website that tracks all SHIB burn statistics, the burn rate has increased by a whopping 350% in the last 24 hours. In numbers, this means that almost 150 million SHIB tokens were burned in just one day. This is a remarkable number, especially considering that SHIB’s burning mechanism has undergone some changes recently.
But what could be the cause of such a drastic increase in such a short time? You can find a hint in a current blog post by Kaal Dhairya, one of the developers of Shiba Inu. In his post, Dhairya discusses the process of BONE minting and giving up ownership of the BONE contract.
Without getting too technical, he describes the steps needed to waive the BONE contract and explains how to use the Timelock contract itself. This update may have stirred things up in the Shiba Inu community and increased the burn rate.
Still, it is still too early to say definitively what direct impact this peak in burn rate will have on the price and popularity of Shiba Inu. In general, a reduction in the total supply of coins in circulation means good news for the price of a cryptocurrency. This is also why the Shiba Inu community is very satisfied with the burning mechanism. It remains to be seen whether the burn rate peak will also have a positive effect on the price.