What Could be Behind the 370% Increase in Shiba Inu’s Burning in May?

During the month of May 2023, a significant number of 15.36 billion Shiba Inu (SHIB) tokens were eliminated through burning. These burns were conducted through 191 transactions. Notably, the total number of burns in May was 370% higher compared to April 2023. In April, only 3.26 billion SHIB tokens were taken out of circulation.

🔥🔥🔥 15,369,335,177 $SHIB tokens have been burned in the month of May with 191 transactions. #shib
— Shibburn (@shibburn) June 1, 2023

Despite the increased burning of Shiba Inu (SHIB) tokens, the asset’s price did not experience an upward surge. Instead, the value of the asset added an additional zero. It is worth noting that the burn portal of Shiba Inu has rarely resulted in a positive price movement. Since reaching its yearly high in early February, SHIB’s price has been downward.

What Prompted an Increase In Shiba Inu Burn In May?

The rise in burn activity can be attributed to various projects engaging in the burn mechanism. Blaze Token emerged as the leading burner of Shiba Inu (SHIB) tokens in May. The project permanently eliminated 11,557,310,052 (11.5 billion) SHIB from circulation through five distinct transactions.

Moreover, on May 29, Blaze Token conducted the largest burn transaction of the month by sending 3,601,495,249 (3.60 billion) SHIB to the dead wallet.

In May, a newly introduced coin on the ShibaSwap decentralized exchange called MARSWAP became the second largest burner of Shiba Inu (SHIB) tokens. On May 24, the project conducted 100 separate transactions, permanently removing 1,350,604,128 (1.35 billion) SHIB tokens from circulation.

Besides these prominent burners, the Coinbase 10 wallet has also played a role in reducing the supply of SHIB. On May 28th, the wallet successfully burned 200,583,666 (200.58 million) SHIB tokens in a single transaction.

Despite the heightened burning activity, Shiba Inu (SHIB) has experienced a 14.4% decline in value over the past 30 days. Furthermore, the token has plummeted by over 90% from its peak value of $0.00008616. As of the latest update, SHIB is currently trading at $0.000008489, indicating a slight 0.38% increase within the last 24 hours.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.