- The Shibarium network launched a burn portal to aid SHIB burns
- SHIB’s burn rate increased by over 43% in the last 24 hours
Shiba Inu (SHIB) recently registered a major development with respect to the burning of its tokens, a move aimed at reducing supply and value.
However, despite these efforts, SHIB has continued its downward trend on the charts. On the contrary, BONE, another ecosystem token, reacted more positively to these developments.
Shiba Inu’s Burn Portal goes live
According to the Shibarium Network’s X (formerly Twitter) page, Shiba Inu introduced a community Burn Portal, which went live on 16 August. The burn portal is designed to reduce the total supply of SHIB tokens and increase their value. Every Layer 2 (L2) network transaction will contribute to burning more SHIB tokens.
In the first 24 hours after the portal’s launch, over 3.2 million SHIB tokens were burned – A sign of strong community participation. Additionally, the analysis revealed that 100 BONE tokens are required to initiate a burn on the portal, which is expected to drive up the demand for BONE as the burn rate accelerates.
At the time of writing, data from CoinMarketCap revealed that over 589 trillion SHIB tokens were in circulation, with a market capitalization of approximately $7.8 billion.
The introduction of the burn portal represents a strategic move to manage SHIB’s vast supply and enhance its value over time while bolstering the utility and demand for BONE within the Shiba Inu ecosystem.
Shiba Inu’s burns so far
An analysis of Shiba Inu‘s (SHIB) burn rate on Shibburn revealed that more than 410.7 trillion SHIB tokens have been burned so far. With a maximum supply initially of over 999 trillion, the significant volume of tokens burned contributed to its press time circulating supply of approximately 589 trillion SHIB.
Further data indicated that in the last 24 hours alone, the burn rate surged by nearly 44%, reflecting an accelerated effort to reduce the total supply. This ongoing burn process aims to manage the token’s inflation and potentially drive its price over time.
How SHIB and BONE reacted to the development
An analysis of Shiba Inu’s (SHIB) price trend indicated that recent developments have only slightly impacted its value.
According to AMBCrypto’s daily timeframe chart analysis, SHIB ended its previous trading session on a downtrend. In fact, this marked the fourth consecutive day of decline for the memecoin.
Source: TradingView
At the time of writing, while SHIB did note a modest hike of around 0.45%, the overall trend remained bearish. The Relative Strength Index (RSI) also pointed to a sustained bear trend, with the same remaining below the neutral line.
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In contrast, BONE performed slightly better on the charts. It hiked by just 1% as news of the update broke out.
Soon after though, the altcoin lost 0.6% of its value.
Like SHIB, BONE also seemed to be in the middle of a bearish trend, with the same evidenced by the fact that the RSI was below the neutral line.
Source: TradingView
