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Cryptocurrencies are powered by new, innovative technology and cutting-edge software development techniques. This is why they are such an exciting subject, and why so many experts predict they are the future of the financial world.

While Bitcoin and Ethereum generally make the most headlines, in recent years there has been a real buzz around Shiba Inu (SHIB). Let’s take a closer look at this meme coin and discuss what is meant by its burn rate.

Shiba Inu: The Facts

Before we can get into the burn rate and what it means, first we need to understand just what Shiba Inu is and how it works.

Shiba Inu was launched in 2020 as a memecoin, similar to the other canine-inspired crypto Dogecoin. Built on the Ethereum network, Shibu Inu uses the SHIB ticker.

However, rather than being a standard digital coin, Shiba Inu is what’s known as a community token. What this means is that the coin can be used within the dedicated Shiba Inu ecosystem. This ecosystem consists of three main components. There is the Shiba Inu metaverse, called the Shibarium, an exchange platform for crypto trading and a marketplace where users can buy and sell non-fungible tokens (NFTs).

The Shiba Inu Price

Shiba Inu is an exciting cryptocurrency that has had people talking since it hit the market three years ago. However, when we look at the asset’s value, it can seem at odds with what is one of the world’s most popular coins.

Currently, Shiba Inu is trading at a value of $0.00000723. The asset’s all-time price isn’t much higher, a value of $0.00008616 reached in October 2021. These prices seem very low, and when we compare them to other popular cryptocurrencies, the disparity is even more striking. For example, Bitcoin is trading at a value of $26,325.67 and Solana a value of $18.72.

Why is the Price So Low?

Why is the Shibu Inu price so low? Sometimes, it can be hard to pinpoint an exact reason as to why an asset is trading at a particular value. However, with Shibu Inu, there is a key factor that can explain the low price.

Token supply refers to the volume of a coin that is currently in circulation. The token supply of Shiba Inu is colossal, far more than any comparable asset. Currently, the Shiba Inu token supply is more than 999 trillion.

This is a huge number that goes a long way to explaining the asset’s low price. It’s simple supply and demand. The more of an asset there is available, the lower its price will be. Conversely, scarcity will see the price rise.

What is the Shiba Inu Burn?

The developers of Shibu Inu aren’t oblivious to the price issues the token supply volume is causing. In response, they have opted to burn some of the currency in an attempt to drive up the price.

Burning is a term used to describe when coins are permanently removed from circulation. To do so, developers will create a crypto address that is able to receive crypto but, crucially, cannot send it back out into the market.

In May 2021, Shibu Inu burned half of its token supply. This saw the price jump immediately by around 40%, a clear indication that burning is an effective strategy. These large-scale burns continue to occur, but the developers have also implemented automated and manual community burning strategies.

For example, coins are burned automatically when transactions using Shiba Inu are completed, and users can manually send coins to be burned. These users are offered rewards as an incentive for burning coins.

The Burn Rate

The rate at which Shibu Inu is burned is tracked on the Shibburn website. This platform provides details on the total current supply and how much has been burned so far. It also displays a percentage value that indicates the rate at which coins have been burned within the past 24 hours.

This burn rate is crucial for any investors or traders who are interested in Shiba Inu, as it can have a significant impact on the value of the asset. When the burn rate is low, the price of the coin will also be low. However, when the burn rate spikes, the asset’s value will rise as a result.

The Shiba Inu burn has become critical to the success and long-term viability of the asset. Without it, there would simply be far too much of the asset in circulation, and this oversaturation would prevent the price from rising. By burning coins, the value will be able to rise, and investors will hope that, eventually, Shiba Inu’s price will be able to rival that of its closest competitors.

Conclusion

The cryptocurrency world is full of complex technical terms and jargon. Many of these can be difficult to grasp, but you need to get your head around them if you want to trade and invest successfully. The idea of burning coins and removing them from circulation can seem a little strange, but doing so can be extremely beneficial. Burning is helping Shiba Inu drive up its price and will likely prove key for the coin’s market success in the future.