Shiba Inu burned in week amount to millions of tokens as SHIB forms predictable pattern
Around 834 million Shiba Inu (SHIB) have been burned in the last week, according to the Shibburn Twitter account.
Meanwhile, 3,053,513 SHIB tokens have been burned in four transactions within the last 24 hours. The daily burn rate has increased by 127%.
In the last 7 days, there have been a total of 834,804,461 $SHIB tokens burned and 82 transactions. #shib
— Shibburn (@shibburn) March 26, 2023
SHIB was slightly higher in the last 24 hours at $0.00001055 at the time of writing.
SHIB/USD 4-hour chart | Source: TradingView
According to the Shibarium literature, the base price of the Shibarium transaction fees will be shared 70/30 for network maintenance.
A Shiba Inu community member, Xanders Shib, provided a screenshot of a comment made by the SHIB lead, Shytoshi Kusama, in which he stated, “Burning SHIB is the key collective effort.”
If a particular amount of BONE ($25,000) has been accumulated in the burn contract, users can initiate the burning procedure from the Layer 2 Shibarium. As soon as this procedure starts, the collected BONE is transmitted to Ethereum’s L1, where it is automatically swapped for SHIB and burned using the contract function.
Instead of being received, tokens are burned and removed from the overall supply, analogous to a withdrawal transaction. Users can access a unique portal on Shibarium’s website for this operation. Anyone can start one of these burns by selecting “Initiate burn.”
They must then confirm a few transactions to permit layer migration. SHIB tokens will be removed from circulation soon once the procedure is completed, and this will be reflected in the overall maximum supply. According to the researchers, when test environments present more realistic circumstances, this framework may be modified or revised in the future months.
Shiba Inu forms predictable pattern that can help traders and investors
Shiba Inu’s (SHIB) burn rate has shown a specific pattern, which may be helpful for traders and investors looking to capitalize on local spikes in network activity. A detailed look at the burn rate’s historical record reveals that it has typically climbed toward the end of the trading week while remaining reasonably stable on weekends. The underlying cause of this behavior is most likely related to decreased market activity near the week’s conclusion.
This observed pattern in Shiba Inu’s burn rate shows that traders and investors may expect more network activity toward the conclusion of the trading week, with decreased activity on weekends. This data can help traders make more informed judgments on whether to enter or quit the market based on their personal trading methods and risk tolerance.
For example, risk-averse traders may take advantage of the anticipated trend by entering the market early in the week and quitting before the weekend, when the burn rate is expected to skyrocket. On the other hand, more adventurous traders may choose to hold their positions over the weekend, anticipating future price gains due to the greater burn rate.
As more traders and investors become aware of these patterns, they may begin to incorporate this information into their trading techniques, further supporting the pattern’s existence.
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