Incoming Shiba Inu Rally? Over 22 Billion SHIB Tokens Burned Across 497 Transactions

22.2 billion SHIB tokens valued at $667 million, have been burned across 497 transactions as revealed by a shib burn tracker. Shiba inu’s developers partnered with Ryoshi Vision and  launched a burning mechanism, Shiburn in April. This mechanism rewards community members who burn the protocol’s native SHIB tokens, on its ShibaSwap exchange platform. 

A new SHIB Token burning mechanism

The burn rate stands at 43.73% over the last 24 hours and a total of 410,364,582,740,177 . Shib tokens have been burnt since the initial token supply as at time of writing.

Cryptocurrency is burnt by sending a part of the existing supply to a ‘burn address’ or ‘zero address,’ which is a ‘dead wallet,’ thus removing it from circulation. Crypto tokens sent to this address cannot be retrieved as the private key of these wallets is not available to anyone.

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 help expedite the outflows of UST from the system, thus pushing it back closer to its peg while pushing down the price of LUNA. Burning tokens can be similar to a company buying back its shares. The company “returns the value” to its shareholders in this way. Crypto projects burn their tokens to achieve the same goal.

Shiba Inu (SHIB) price drops

The second largest memecoin in the world saw a dramatic drop in the month of May following the ongoing market decline. In the first week of May, the meme token saw an over 60% loss.

The indicators paint a rough short-term future for SHIB and price is likely to retest $0.000017 before any possible bounce.

Meanwhile, Shib’s daily relative strength index (RSI) has dipped below 30, an oversold territory that further catalyzes a short term rebound. This year, Shib’s returns have been  50% below zero, one of the worst performances by a top performing cryptocurrency in 2022.