Shiba Inu is one of the most popular meme coins in the crypto space that was launched in 2021 and currently sits in second place in market capitalization among other meme tokens and coins.
The coin became popular after it was launched in the bull market where it was dubbed to be the next Dogecoin.
The coin surged significantly after the launch which created FOMO, attracting a lot of new holders into it.
Shiba Inu’s development continued as it currently has a lot of products attached to it, distancing itself from the narratives of memes.
However, the coin supply of SHIB is so high that many are not confident that the coin will go up again like it used to.
To combat this, the team behind SHIB introduced a burn mechanism, which was welcomed well by the community.
Shiba Inu Burn Tracker
To help with this burn mechanism, the community created a burn tracker, which can be accessed through the Shibburn website.
The website itself shows the burn condition of the SHIB coin, where an oracle gathers all of the data from a blockchain in real time.
Shibburn Website / Source: Shibburn.com
The website displays the current circulating supply of SHIB and how many have been burned compared to the original supply of SHIB.
It also shows how many coins are being burned in a specific time, while also displaying the wallet address that burnt their SHIB.
Most of these burn transactions came from whales who are excited to help SHIB grow and regain its momentum from the launch.
This website is useful for analysts to see the burn transaction of SHIB to analyze the interest around SHIB itself.
Why is Burning Coins Important?
Burning coins is important for SHIB as the burn mechanism reduces its supply. The reduction of SHIB supply can help its price go up significantly since it all depends on the market capitalization.
The original supply of SHIB was 999,99 Trillion SHIB, which means that to reach $1 per SHIB, the market capitalization would have to reach $999,99 Trillion, which is nearly impossible.
For comparison, Bitcoin itself has only around $2 Trillion, and other tokens below Bitcoin have a market capitalization of around billions. This means that SHIB can't reach the $1 price if the burn mechanism is not introduced.
The burning mechanism helps the token’s price grow so that it can get to a higher number than what it currently is, essentially giving profit in the future for its holders.
The burning mechanism is supported by the community itself, and it can be an indicator to see how active the community is and how loyal the holders are.
Analysts use this data to see the transaction volume and the price movement of SHIB, because usually, when the burn transaction increases, so does the price and the transaction volume of SHIB.
Conclusion
Overall this tool can be a great help for SHIB holders as they can use it to tell how active the community is, increasing their confidence when holding SHIB.
All of the data provided are also real-time data, which means that it can be accurately used for daily analysis.
While half of the original supply has been burned, there is no telling when the supply will be significantly reduced, so it is good to keep an eye out through this website.
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