The burning rate at which SHIB tokens were permanently destroyed spiked up by over 6700%, says SHIB burn data website ShibBurn. The burning rate increase came after the development team behind Shiba Inu initialized its much-anticipated Burn Portal testings.
A week ago the circulating supply of popular meme tokens was reduced by 103.8 million SHIB. There are still 549,063.28 billion SHIB tokens in circulation at the time of the writing.
Not enough for an impact
Although token burn reduces supply and is expected to fuel SHIB price rally, there are still doubts as to whether the reduced supply will really affect the price of iconic Doge-killer.
The same ShibBurn shared view stating that “there are many more factors that contribute to price movement.”:
SHIB team has teased the community at the beginning of February with promises to launch a public testnet of its Layer-2 blockchain Shibarium. Shiba Inu is currently based on the Ethereum network and operates as an ERC-20 standard token.
When the Shibarium mainnet has been fully implemented, SHIB will have its own blockchain to migrate to, which will in turn lower transaction costs and gas fees.
Respectively, Shiba Inu developers are working on launching SHIB’s own metaverse project in 2022, called “The Shiberse”.
SHIB price struggles to recover
Despite the increased token burn rate, Shiba Inu is in a downtrend since February 9th, when it reached the highest point of $0.00003477 this year.
SHIB has been gradually declining since then, losing more than 38%of its value within more than a month.
Trading experts warn of SHIB being at the major support levels of $0.00002150. If an important support level is not maintained and broken downwards, here might be a possibility of a more severe Shiba Inu (SHIB) price fall.
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Source: Cryptocurrency - investing.com
