The Shiba Inu (SHIB) community has observed a rise in the practice of burning tokens, which is a tactic used to lower the quantity in circulation. The price of the SHIB token has not changed significantly over the last couple of days, despite this uptick.
Burning tokens is a popular strategy used to affect a crypto’s value by reducing the amount in circulation.
However, there is disagreement regarding this strategy’s efficacy; some contend that significant quantities must be destroyed in order to have a significant effect on the market.
With a circulating supply in the trillions, experts predict that burning $1 million worth of SHIB tokens would be necessary to make a major impact on its price.
However, recent increases in SHIB burn rates have only resulted in millions or thousands of tokens, which is a negligible portion of the total supply.
It’s critical to understand that factors other than token burning affect Shiba Inu prices. The factors that influence price fluctuations are market sentiment, investor psychology, trading activity, the competitive environment, and advancements within the SHIB ecosystem.