Let's take a look at why Shiba Inu's burn rate has decreased.
Shiba Inu burn rate down
On September 29 2022, approximately $8 million SHIB tokens were sent to the burn portal. On the other hand, on September 21 2022, $2.9 million tokens were burned, this is one of the lowest burn amounts reported in the last 30 days during that time frame.
Given the current phase of the crypto market, major cryptocurrencies are being crushed under the weight of bearish sentiments and fiat inflation, causing prices to fall to new lows. The low burn numbers could be attributed to the bear market, low trading activity and Shiba Inu investors not burning their tokens.
In recent data from WhaleStats, Ethereum whales are currently holding over $132 million worth of SHIB.
How does Shiba Inu Burn coins?
The idea of burning Shiba Inu tokens was introduced primarily to reduce the one quadrillion SHIB coins in circulation.
To combat the oversupply issue, the Shiba Inu ecosystem burns SHIB tokens often. The metrics are recorded to gauge Shiba Inu's price performance in the long run.
Burning tokens equates to scarcity or limited availability of the token, which is one of many ways cryptocurrencies can increase their value.
Shiba Inu has its own independent burn portal called Shibburn, which was launched in 2022 and has already destroyed nearly 60 billion Shib tokens. The portal was inspired by Ethereum's co-creator Vitalik Buterin's $6.7 million token burn in May 2021.
Burned SHIB tokens are sent to 3 special addresses that have no obtainable key. The 3 addresses are not created by the Shiba Inu team and are used to burn other cryptocurrencies.
One of the burn addresses were used by Vitalik Buterin to burn SHIB in 2021. Tokens sent to the genesis address, aka the black hole, also reduce the overall supply of Shiba Inu.
Can Shiba Inu reach $0.01?
With a circulating supply of one quadrillion, it will take a long time for SHIB to break past $0.01 or even $0.001.
Shiba Inu holders are hoping that the next bull run can be the catalyst that the token needs to break $0.01, irrespective of its current market statistics in comparison to Bitcoin according to the cryptocurrency market cap comparison website MarketCapOf.
The Shibburn portal is expected to burn 111 trillion tokens annually. With the launch of the Shibarium and Shiba Eternity games, the Shiba Inu ecosystem's burn mechanics will accelerate, which can help with Shiba Inu's price and supply issues in future, but nothing is set in stone.