More Shiba Inu [SHIB] Tokens to be burned, but to what end?

  • SHIB tokens must be burned with every transaction made on Shibarium.
  • SHIB Bank saw an increase in backlogs last week.

While the launch date of Tier 2 Shibarium is still unknown, the developers of the Shiba Inu ecosystem more dangerous A short Twitter thread on January 7th stated that every transaction on the Shibarium network will cause the SHIB token to be burned.


Read the Shia Inu book [SHIB] Price forecast 2023-24


This announcement was made after preliminary emphasis On January 4, Shiba Inu’s BONE token will power transactions on the yet-to-be-launched Layer 2 network. Developers said,

“This is to confirm and verify, on our part, the official source, that 🍖 BONE is, and continues to be, the only token chosen for gas fees and use.”

They further added:

“Shibarium was developed for the Shibtoken and not for other projects claiming ownership or speculating about its functional dependence on other tokens.”


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More SHIB will be sent to the abyss, but for what purpose?

Since the launch of the ShibBurn portal in April 2022, 410 trillion SHIB tokens have been burned. The developers of the Shiba Inu ecosystem launched ShibBurn as a coin burning mechanism to allow its users to generate passive income by burning SHIB coins.

Coin burning means that a certain number of coins are taken out of circulation, either permanently or temporarily. This process can be carried out for various reasons, one of which is to reduce the supply of coins and thus increase their value.

Source: ShibBurn

This can be seen as a deflationary strategy because it reduces the total number of coins, which can lead to an increase in their value.

Since the burning gate was launched, and more than 400 trillion SHIB tokens have been burned so far, the SHIB price has failed to provide any price hike. For context, the meme coin has since fallen in value by more than 250%, data from CoinMarketCap show up.

A combination of the general market contraction in 2022 and the nature of the SHIB as a trophy coin can be attributed to the main reasons for the coin’s steady decline over the past year.

It is known that meme coins may initially experience an increase in value, but this is often followed by a steady decline over time. This is because the values ​​of these coins often depend on their perceived popularity or uniqueness, both of which can be volatile.

If the popularity of a coin decreases, then its value is likely to decrease as well. This has been the case for SHIB over the past year.

IF YOU HAVE SHIB…

As the market as a whole tries to recover from a turbulent end to the 2022 trading year, data from CoinMarketCap shows that the price of SHIB has gained 4% in the past week.

With SHIB accumulating further over that period, the Money Flow Index (MFI) has held above the neutral point of 60 at press time. Similarly, the dynamic line (green) of SHIB’s Chaikin Money Flow (CMF) is positioned above the center line at 0.04 in an uptrend. Rising CMF is a sign of market strength.

Source: TradingView

Finally, the positive sentiment surrounding the meme coin has contributed to its price growth since the beginning of the year. At the time of publication, the SHIB weighted sentiment is positive at 2,396.

Source: feeling

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