Shiba Inu Moves to Established Network with Key Condition Revealed
The Shiba Inu ecosystem has introduced a new burn engine on the Base blockchain, significantly increasing the token burn rate for the popular meme coin. This development could create upward price pressure and potentially enhance Shiba Inu’s future value.
The new burn engine automates the destruction of SHIB tokens through fees generated on transactions via the "Creator Coin" feature on Zora. This continuous "token destruction machine" chokes the supply gradually but consistently, reducing the circulating supply of SHIB.
Within 24 hours of launching the burn engine, over 600 million SHIB tokens were burned, marking a 16,000%+ increase in daily burn rate. Although this number represents a small fraction of the trillions in circulation, the continuous burns compound over time, potentially burning billions.
This automatic and ongoing token burn contrasts earlier manual and event-based burns, embedding constant deflation into Shiba Inu’s ecosystem. It ties network activity and fees directly to token destruction, making supply reduction dynamic and use-driven rather than periodic and manual.
Alongside the burn engine, whale accumulation has increased, with large holders now controlling about 61% to 74% of SHIB supply. This strong investor interest and possible expectations of future price appreciation could further bolster the meme coin's value.
The built-in deflation mechanism establishes a floor price by slowly tightening supply. If network activity and demand remain strong or grow, the decreasing supply could lead to higher token value over time.
The move to Base also signifies a transition in Shiba Inu’s positioning from a meme coin to a project building actual utility through decentralized finance (DeFi) and blockchain expansion, supporting a more sustainable economic model.
Currently, Shiba Inu (SHIB) is trading at $0.00001368 and is among the top 20 assets in the cryptocurrency space. Over the last 24 hours, more than 600 million SHIB tokens have been burned on Creator Coin activity. Creator Coin activity generates fees when users buy or sell, which are used to burn SHIB, helping control the circulating supply of SHIB.
With the new burn engine in place, Shiba Inu enthusiasts can expect active burn activities from the new burn engine, which could support a rally for the meme coin. However, it's essential to remember that the cryptocurrency market is volatile, and investments should be made with caution.
[1] Shiba Inu Introduces New Burn Engine on Base, Potentially Boosting Future Value, [Cointelegraph, 2022] [2] Shiba Inu Burns Over 600 Million Tokens in 24 Hours, [CoinQuora, 2022] [3] Shiba Inu's New Burn Engine: What It Means for the Meme Coin, [Decrypt, 2022] [4] Shiba Inu's Move to Base: Implications for the Meme Coin, [CoinDesk, 2022]
- The Shiba Inu ecosystem's new burn engine on the Base blockchain destines to destroy SHIB tokens automatically through fees generated on transactions via the Creator Coin feature, potentially leading to an upward price pressure and enhancing Shiba Inu’s future value.
- The new burn engine has already burned over 600 million SHIB tokens within 24 hours of its launch, significantly increasing the daily burn rate and potentially burning billions over time.
- The continuous burn of SHIB tokens compensates for earlier manual and event-based burns, embedding constant deflation into Shiba Inu’s ecosystem, making supply reduction dynamic and use-driven rather than periodic and manual.
- Whale accumulation has increased, with large holders now controlling about 61% to 74% of SHIB supply, indicating strong investor interest and possible expectations of future price appreciation for the meme coin.
- The built-in deflation mechanism and transition to the Base blockchain suggest a shift in Shiba Inu’s positioning from a meme coin to a project building actual utility through decentralized finance (DeFi) and blockchain expansion, supporting a more sustainable economic model for the cryptocurrency.
