The Shibburn portal, which reports on the number of SHIB that have been burned, has once again announced that 30.43 million SHIB have been burned in the last 24 hours. Normally, such news is greeted with joy by optimistic Shiba Inu fans, because the burning, especially of millions of SHIBs, is meant to reduce the number of coins in circulation and, through deflation, increase the price of SHIB.
In the past 24 hours, there have been a total of 30,426,107 $SHIB tokens burned and 17 transactions. Visit https://t.co/t0eRMnyZel to view the overall total of #SHIB tokens burned, circulating supply, and more. #shibarmy
— Shibburn (@shibburn) August 12, 2022
Nevertheless, six-figure burning amounts do not work in the case of Shiba Inu, because 30 million SHIB is only $370, which is literally 0.0005% of the project’s capitalization. Moreover, if you look at the statistics of SHIB burning for the last five days since the end of last week, it turns out that during this period 394 million SHIB were burnt, which in turn does not even exceed $5,000.
What does SHIB really need?
This is really quite a strange situation. On the one hand, SHIB quotes are at the bottom, and it would be more logical to burn more of the 550 trillion of SHIB in circulation now. At the same time, if the crypto market starts to thrive and prosper again, it will be much more expensive to burn a lot of SHIB for a good increase of Shiba Inu capitalization.
This story is also confused by the fact that 10% of the SHIB supply is concentrated in the wallets of the 2,000 largest Ethereum holders. Maybe ETH whales are not interested in burning their SHIB wealth and hope that smaller holders will do it for them. It is also possible that Shiba Inu does not need abundant token burning at all and, for the purpose of offering hundreds of trillions of tokens it is enough, but then no special price spikes are worth waiting for.
Source: https://u.today/only-394-million-shib-burned-this-week-heres-why-mechanism-is-not-effective