Shiba Inu Sets a Record With Over 1 Billion SHIB Burned in a Single Transaction

Leading memecoin project Shiba Inu escalated its Shibburn process on Monday when an unidentified whale sent over 1 billion SHIB tokens to an unspendable wallet. The mammoth-sized transaction marked the highest single Shibburn ever and raised the exercise rate by 116,757%.

The latest Shibburn affected Shiba Inu’s price, which surged 2.3% on Monday after an initial 3.45% decline earlier in the day. The price surge highlighted the deflationary effect of the Shibburn exercise, which the Shiba Inu community initiated a few years ago to reduce the memecoin’s circulating supply, promote scarcity, and drive demand.

Although the latest Shibburn represents the highest-ever SHIB volume destroyed in a single transaction, it is only the second time that the Shiba Inu community has burned up to 1 billion SHIB tokens at once. The initial billion-SHIB burn exercise was about a week ago, suggesting an increasing trajectory in the Shibburn exercise.

For proper context, the Shiba Inu community, via the community burn portal, ShibTorch, removed over 1.3 billion SHIB tokens from circulation. The process involved the Shibarium network, converting BONE tokens to SHIB before removing them from circulation. The converted BONE comes from gas fees collected on Shibarium.

Analysts believe the Shibburn exercise has played a significant role in sustaining Shiba Inu, despite prolonged bearish pressure. A renowned Shiba Inu ecosystem core team member, Lucie, the challenges the project faced over the past few years. However, she confirmed that all the so-called rival projects that emerged between 2020 and 2022 have disappeared.

Lucie’s assertion suggested the deliberate involvement of some individuals and entities in Shiba Inu’s struggles over the recent years. However, she urged the memecoin project’s community members to “be smart,” a plea which highlighted her belief in the project’s future and potential to recover from the protracted bear trend.