According to Shiba Inu (SHIB) team member Lucie, the project will undertake a significant burn soon. Lucie took to X and shared with the SHIB community that the team has collected 40 ETH, worth around $158,200, to purchase tokens for burning purposes.
$158,200 would get around 4.5 billion SHIB tokens. Sending such a significant amount of coins to the dead wallet might lead to a spike in SHIB’s burn rate. SHIB’s burn rate is currently down by 67.04%, burning 48 million tokens in the last 24 hours.
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Will Shiba Inu (SHIB) hit $0.00004 after burning 4.5 billion tokens?
Although 4.5 billion tokens is a significant number, it is still tiny compared to SHIB’s circulating supply. The project has around 589 trillion tokens in circulation right now. Given the ratio of tokens for burning and the number of tokens in circulation, we might not see a massive price spike.
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Moreover, although Shiba Inu (SHIB) has seen burn rate spikes after rallies, the asset has seldom seen a price spike after a burn rate surge.
However, the SHIB team is working on a new burn mechanism, rumored to burn trillions of tokens yearly. However, the team has not disclosed the launch date of the new burn mechanism. If the project can drastically reduce its supply, there is a chance that we will see a rise in prices.
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One of the biggest catalysts for Shiba Inu’s (SHIB) epic 2021 rally was Vitalik Buterin’s massive SHIB burn. Buterin received half of SHIB’s supply upon the project’s launch. However, the Ethereum (ETH) co-founder decided to burn 90% of the tokens he received, significantly reducing SHIB’s supply.
