Shiba Inu rose from its status as a meme coin after becoming a part of many mainstream collaborations and with multiple payments service providers accepting it as a payment method. Thus, in order to attain that status, SHIB also turned towards making itself more sustainable.
Shiba Inu burns
One of the key aspects of cryptocurrency is its supply, and excess supply always keeps the price of the asset at a low since the factor of rarity is lost in their case.
Well, that was the case with SHIB as well, but with the implementation of the burn mechanism and burning almost half a quadrillion SHIB out of its supply, it is slowly regaining the interest of investors.
As it is, the token’s biggest weapon is its social presence, and introducing rarity, only made the asset more alluring.
In line with furthering that objective crypto exchange service provide a NOWPayments enabled burn feature for merchants who can optionally burn anywhere between 0-100% of the profit they receive.
Those who opt for it would add to the total supply burnt, which has been rising significantly since the initial 410 trillion SHIB burn.
The highest burn was observed back in August, September, and October peaking at 9 billion SHIB. But ever since November, the same figure slipped to 1.1 billion owing to the lack of activity from investors after SHIB fell by 74%
But despite the rally of February, SHIB fell down. And, is currently up by 15% from its local bottom.
Regardless, the rising bullishness this month seems to have brought back investors as well.
On-chain transactions peaked in November when on a single day, 133k transactions were conducted.
Since then, for the first time last week, on 16 March, daily active users and transaction stats spiked. This reawakened the investors, with the average daily transactions currently standing at 14k.
Consequently, this month, Shiba Inu’s total burnt supply reached its five-month high of 4.4 billion SHIB. (ref. Monthly SHIB burn image)
Thus, if on-chain factors play well, we could observe more bullishness from investors. In fact, a rise in daily active addresses would definitely benefit SHIB’s price action.