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- Shiba Inu has recorded a sharp rise in the burn rate of its SHIB tokens, with millions of tokens destroyed as the community pushes for a long-overdue price rally.
- SHIB has lost 2.6% in the past day, and despite most of its technical indicators staying neutral, whales are dumping the token and creating selling pressure on exchanges.
Shiba Inu has recorded a sharp spike in the burn rate of its native SHIB token, but its price has failed to rediscover its upward trajectory as whales dump the token.
On June 5, the network burned over 4.8 million tokens in seven transactions, reports Shibburn, which reflects a 3,894% spike in the burn rate.
While the rise in the burn rate was welcomed by the community, it doesn’t do much in the grand scheme of things for SHIB. For context, the 4.8 million tokens burned on June 5 were worth a mere $122, a drop in an ocean worth $14.78 billion in overall market cap.
Still, the Shiba Inu community continues to latch onto the burns as one of the keys to a price increase. The ecosystem burned 139 million SHIB tokens in 295 burning events. At that rate, it would take the community 316,422 years to burn 90% of the 589 trillion tokens in circulation.
Clearly, burning alone can’t be the key to SHIB’s price increase. However, combined with other initiatives, it could make an impact. This week, lead developer Shytoshi Kusama claimed his team was working on a grand plan that would align with Vitalik Buterin’s hallmarks of a good meme coin project, which includes having a public good as the ultimate goal and fun mechanics.
“The north star should be: to have a project where even if eventually all tokens involved go to zero, the average person who participated is happy to have done so,” said Buterin.
For Shiba Inu, the competition comes from multiple fronts, including a long line of new and shinier meme coins, especially those built on Solana, which have become ultra-popular, such as WIF and BONK.
However, SHIB continues to hold its own. As Crypto News Flash reported, in some markets like India, SHIB is the most popular crypto overall, beating all other meme coins and even the mainstays like Bitcoin and Ethereum.
Beyond Shiba Inu, many other meme coins dipped in the past day. BONK led the losses among the major meme coins, shedding 5%, with FLOKI, BOME, WIF and PEPE each dropping around 4%. Dogecoin lost 1.8%. In the past week, FLOKI, at 17.2%, was the only major meme coin to record gains as the market soured for the fun-themed coins.
Meanwhile, investor interest remains high in PEPE, which hit $1.06 billion in 24-hour trading volume, the highest in the meme coin market. in May
