More Than 18 Million Shiba Inu SHIB/USD Tokens Were Just Kicked Out of Circulation, Applying Deflationary Pressure

Applying additional deflationary pressure on the popular dog-themed meme coin.

An interesting tidbit emerged on Monday, highlighting a substantial reduction in Shiba Inu (SHIB / USD) tokens. A total of 19.16 million SHIB tokens were removed from circulation. This event had a direct impact on the meme coin, applying additional deflationary pressure.

According to Shibburn, the coin’s official burn tracker, the burn rate surged 1734% over the last 24 hours, leading to a supply squeeze of 19.16 million SHIB tokens.

As of writing, approximately 410.74 billion tokens have been burned, leaving a circulating supply of 584.37 billion tokens.

Coin burning occurs when a cryptocurrency token is intentionally sent to an unusable wallet address to remove it from circulation. This method is employed to create scarcity and ultimately boost the token’s demand and market value. However, it’s crucial to note that scarcity alone is insufficient to drive up the price if it’s not accompanied by corresponding demand.

Moreover, another crypto firm is preparing for a public listing. Galaxy Digital anticipates an Nasdaq listing shortly after the U.S. Securities and Exchange Commission approves a move to list on the Nasdaq exchange following a recent approval for listing on the Canadian Exchange.

Shibarium transactions drop 28%

Interestingly, the massive jump in incineration came despite a 28% drop in transactions on the ecosystem's Layer-2 blockchain, Shibarium.

A portion of the transaction fees paid on Shibarium are set aside and burned through an automated burn mechanism. It’s worth noting that Shibarium reached the 1 billion transaction milestone earlier in the month.

Speculative interest in the meme coin was minimal as of writing, with Open Interest in SHIB futures showing minimal change over the last 24 hours, according to data from Coinglass. Additionally, the Long/Short Ratio was below 1, suggesting that a higher number of traders were betting on its price decline.