Shiba Inu is one of the most popular meme currencies in the DeFi space. The project has adopted a deflationary mechanism where the investors participate in token-burning events at regular intervals. The communities of Shiba Inu investors recently sent 98 million tokens to the burning addresses last week.
As a result of the burning ceremony, the price of the Shiba Inu token has experienced a two-digit appreciation. During the last 24 hours, the whales of Shiba Inu have proceeded to burn 9 million tokens by sending them to dead wallets.
It is worth noting that once these tokens are sent to burn addresses, they cannot be added back into the main circulatory supply.
Since the current round of token burning has started, the largest reported burning installment took place on 13th February. The whales of the meme currency have reportedly sent 39 million SHIB tokens to burn addresses from an identified Binance wallet.
Another major burn was reported by Shib whale Super Store which burned around 8.7 million tokens recently. Super Store reported this burn on its Twitter account.
An online tracker dedicated to the Shiba Inu token has reported that in the past 24 hours, an astounding 9.8 million SHIB has been redirected to burn addresses.
Layer-2 Scalability Network
The current activity noticed in the Shiba Inu community is not a coincidence. The network investors have started to take measures on account of the approaching date of Shibarium. Shibarium is a layer-2 scalability network that is set to get hosted on Ethereum. The creator of the project, Shytoshi Kusama, has also talked about this matter.
He recently reached out to his followers on Discord to say that whales are set to burn trillions of Shiba Inu tokens before the release of Shibarium.
As per the MVRV-Z score, Shiba Inu is currently undervalued. Some investors estimate that the price of the meme coin may reach $0.001 in the upcoming months.