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The Shiba Inu (SHIB) community has burned over 12 million tokens, taking the burn rate to 300%. The burn occurred on January 2, 2024, as the community anticipates a new NFT project. Rival memecoin, FLOKI also saw a surge in single-day token burns.
Through the burn, the community took 12,435,582 SHIB tokens out of circulation. The transaction reduced the number of SHIB in circulation to about 581 trillion.
What the Latest SHIB Burn Means
According to Etherscan, the burn sent the tokens to a burn address. The address is one of three the community uses to take tokens out of circulation. The burn leaves around half of the token’s one quadrillion supply available.
The project relies on burns to boost investor value and control inflation. Ethereum co-founder Vitalik Buterin burned 90% of the tokens developers sent him after launching SHIB. Following Buterin’s burn of roughly 405 trillion tokens, SHIB’s price increased by 40%.
Read more: Shiba Inu Burn Rate Explained: Understanding Token Burning
New SHIB NFT Project May Boost Adoption
Shytoshi Kusama, a public-facing developer, said in late December that burns would only “be impactful” through other efforts to expand the project’s ecosystem.
“Impactful burns will only take place through global adoption. We’ve seen adoption trickle in through 2023, but what can be done to ensure $Shib adoption worldwide perpetually? For this, a web of decentralized leaders, early adopters, and those tired of the status quo must usher in a new era of crypto, blockchain, and ‘Web3’,”
Shythoshi said in a thread on X.
The community recently announced several upgrades to boost adoption. It has partnered with D3 Global to create SHIB name tokens to form the basis for a new decentralized identity. The project could allow holders to own a website and email address ending in “.shib.”
A novel non-fungible token (NFT) project could also boost adoption. The project will allow users to mint NFTs from physical items.
A user can send the SHIB community a two-dimensional drawing of a physical item to participate. Their item will be manufactured in three dimensions if it meets certain eligibility criteria. The buyer can add the product to the metaverse by scanning an embedded electronic device.
SHIB developers rolled out the Shibarium metaverse in 2023 amid some controversy. Despite this, the SHIB token recorded a higher annual trading volume than Ripple (XRP), Polygon (MATIC), and Ethereum (ETH) during the year.
The SHIB token is down 9.82% in the last 24 hours. Its current daily trading volume is $400.2 million.
Memecoin Rival FLOKI Sees 600% Daily Burn Rate
Like Shiba Inu, FLOKI experienced a single-day surge in tokens burned. Reaching a staggering 600% burn rate. A total of 218 million FLOKI were removed from circulation over the past 24 hours.
Read more: How To Buy Shiba Inu (SHIB) and Everything You Need To Know