Shiba Inu Burn Rate Sees Significant Rise
The burn rates of meme coins Shiba Inu and FLOKI have experienced a sharp increase in the past few days. Interestingly, both coins have seen almost identical spikes in their burn rates, leading to speculation about a coordinated effort to reduce the available supply of these cryptocurrencies.
The burn rate of Shiba Inu had decreased during the holidays but started to rise again once the market picked up. The spike began on Wednesday with a 300% increase in a 24-hour period. On Thursday, the burn rate saw a more than 10x increase compared to Wednesday, reaching a 3,963% spike according to data from Shibburn.
Despite this significant increase in burn rate, there hasn’t been any impact on the price of SHIB, which remains low at $0.08. This suggests that the burn rate has not affected the price significantly and that they are operating independently.
FLOKI Also Experiences Burn Rate Spike
FLOKI, another rival of Dogecoin, has also seen a notable increase in its burn rate. The burn initiative of FLOKI has gained popularity within its community. Over the last day, FLOKI burned 218 million tokens, resulting in a 600% spike in burn rate.
Currently, there are only 4.22 trillion FLOKI tokens left in circulation, accounting for 42.234% of the total supply. This means that more FLOKI tokens have been burned than are currently in circulation.
Similar to Shiba Inu, the spike in daily burn has not positively impacted the price of FLOKI. The coin is currently experiencing losses of 11.2% on the daily chart and is down 14.2% on the weekly timeframe.
Hot Take: Coordinated Effort to Reduce Supply?
The recent spike in burn rates for both Shiba Inu and FLOKI raises questions about whether there is a coordinated effort to decrease the available supply of these meme coins. The almost identical spikes in burn rates suggest a possible collaboration between the communities of these cryptocurrencies.
However, despite the significant increase in burn rates, neither coin has seen a substantial impact on their prices. This indicates that the burn rates may not be influencing the market dynamics significantly, and the coins continue to operate independently.
It remains to be seen how these burn initiatives will affect the long-term value and sustainability of Shiba Inu and FLOKI. As with any investment, it is crucial to conduct thorough research and consider all factors before making any decisions.
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