Shiba Inu (SHIB) is burning its coins in the highest gear. Nearly 747 million SHIB tokens have been burned since early Monday, accounting for more than $16K of the total value, going by its $0.00002146 price as of this writing.
The burn rate at which SHIB tokens are being permanently destroyed spiked by over 6700%, says SHIB burn data website ‘ShibBurn‘. The heightened burn rate occurred after the development team behind Shiba Inu initialized its much-anticipated “Burn Portal” testings.
A week ago, the circulating supply of popular meme tokens was reduced by 103.8 million SHIB. Though there are still 549,063.28 billion SHIB tokens in circulation at the time of the writing.
Not Enough to Make an Impact
Although token burns gave been reducing the total supply and are expected to fuel a SHIB price rally, there are still doubts as to whether the reduced supply will significantly affect the price of iconic “Doge-killer.”
ShibBurn shared their view, stating that “there are many more factors that contribute to price movement.”
The SHIB team teased the launch of a public testnet for its Layer-2 blockchain ‘Shibarium‘ in February. Shiba Inu is currently based on the Ethereum network and operates as an ERC-20 standard token.
When the Shibarium mainnet has been fully implemented, SHIB will have its own blockchain to migrate to, which will in turn lower transaction costs and gas fees.
Additionally, the Shiba Inu developers are working on launching Shiba Inu’s very own metaverse project in 2022, called ‘The Shiberse’.
SHIB’s Price Struggles to Recover
Despite the rising token burn rate, Shiba Inu has been experiencing a downtrend since February 9th, when it reached the highest price point of the year at $0.00003477.
SHIB has been in gradual decline since then, losing more than 38% of its value in just over a month.
Trade experts warn that SHIB is at the major support level of $0.00002150. If an important support level is not maintained, and breaks through the downwards marker, then there could be a possibility of a more severe price fall for Shiba Inu (SHIB).