Does Burning Crypto Increase Value?
Shib Robinhood was public in August 2020 as a Dogecoin alternative. Robinhood Shib fulfilled a long-standing demand of cryptocurrency enthusiasts by listing Robinhood Shiba Inu Burn(SHIB) cryptocurrency on its own trading platform.
The question of which will be the greater catalyst for Shiba Inu has a simple answer. Without a doubt, the establishment of a burn portal will also have a greater long-term impact on the price of the digital token.
The Shiba Inu listing on Robinhood was only a temporary boost. The meme coin has already lost the majority of its gains since the announcement of its inclusion in the popular trading platform.
Shiba Inu was public in August 2020 with a finite supply of one quadrillion tokens, all of which were monetary at the time. However, this does not tell us how many SHIB coins are in circulation, because there is currently no longer 1,000,000,000,000,000 SHIB to circulate.
The founder, who goes by the alias Ryoshi, locked 50 percent of the total availability into Uniswap as well as effectively “threw away the keys,” according to the token’s whitepaper. This increased the token’s liquidity and enabled anyone to purchase it. It also allowed Ryoshi to begin renouncing control of the project, allowing him to realize his dream of making SHIB a decentralized token.
He relinquished any remaining impact by gifting the remaining 50% to Vitalik Buterin, one of Ethereum’s co-founders. Buterin believed that this contradicted Shiba Inu’s decentralized goal.
Will they burn Shiba Inu coin?
He sent 10% of the donated tokens, which were worth around $1 billion at the period, to a Covid relief fund for India, tweeting that he really does not wish to be a “locus of power.” The remaining 90% went to a burn wallet, which could receive and not sell cryptocurrencies.
Thus according to CoinMarketCap, the world currently has 549,063 billion SHIB.
According to CoinMarketCap, the number of people who currently own SHIB steadily increased in the last three months of 2021. The token was in over 865,000 unique wallets as of November 4th.
By the 26th of January 2022, the figure had risen to more than 1.13 million. It increased again the following month, approaching 1.2 million holders.
However, SHIB experienced a significant drop in March and April, only with 1.12 million investors owning the meme token. This figure has begun to rise again, and as of this writing, it stands at 1.18 million.
Shiba Inu ownership is not in share evenly – the majority of SHIB is with just 100 people or 0.008 percent of holders at the time of writing. These 100 people control 81% of the market.
The equation used by CoinMarketCap also includes Ethereum co-founder Vitalik Buterin’s burn wallet, which contains 45 percent of the original one quadrillion SHIB.
However, counting the coins in the Shiba Inu ecosystem does not end there.
Shiba Inu has advanced from a cryptocurrency to a “vibrant ecosystem” that now includes a decentralized finance platform, according to the meme token’s website. ShibaSwap, as it is, provides a variety of unique tokens as well as functions.
On the ShibaSwap platform, users can perform three main functions: bury, dig, and fetch. ‘Bury’ refers to staking tokens, ‘dig’ to provide liquidity, and ‘fetch’ to token swapping.
To allow users to complete these tasks, new tokens have been public. The second token to enter the ecosystem was Doge Killer (LEASH). With LEASH, the team took an entirely different approach than with SHIB, minting only one million tokens.
The price difference is visible to investors: while SHIB is currently below $0.0001, LEASH is currently above $500. There is 107,647 LEASH in circulation.
With only 250 million tokens minted, BONE is the most recent token to enter the ecosystem and has a lower circulating supply than SHIB. Shiba Inu’s decentralization goal was in perception with the creation of the new token.
BONE is a governance token that allows its community to vote on important proposals like which tokens must be in its ShibaSwap platform. BONE, on the other hand, is much cheaper than LEASH, with a price of $0.36. This corresponds to its significantly larger total supply of 6.9 million BONE.
The utility of Shiba Inu’s vast ecosystem has given the group hope that it can outperform its competitor, Dogecoin. In terms of market capitalization, SHIB and DOGE were neck and neck in 2021. At times, the newcomer even surpassed the token that motivated its creation.
However, the Shiba Inu token has sunk behind for the time being.
It is currently 16th in position on the basis of market cap, six places lesser than Dogecoin. This dogfight, however, is far from over. In the crypto community, there is a growing preference for tokens with utility over those that serve only as a simple store of value.
It also implies that Shiba Inu will benefit from Ethereum 2.0, which is expected to be completed later in the year. Ethereum is expected to evolve into a much faster and far more scalable blockchain by switching to a proof-of-stake system.
But Dogecoin has one more trick up its sleeve. Elon Musk has been a vocal supporter of DOGE, even allowing customers to buy Tesla merchandise using the meme token, but he has stated that he does not own any SHIB.
Shiba Inu may not have any billionaire backers, but it does have an active community. Because the platform takes direction from its users, it can continue to evolve and implement new ideas.
Shiboshis is a collection of 10,000 NFTs from Shiba Inu. Each NFT is a one-of-a-kind work of art with its own set of characteristics. These odd-looking dogs have been uploaded to Ethereum and are available for purchase on OpenSea.
The ecosystem is now also developing its own metaverse.
Investors can bind LEASH to the platform in order to gain access to the map as well as early entry into bidding on plots of land in the metaverse. However, shareholders should be aware that the virtual world has yet to launch, making it difficult to predict how successful SHIB’s vision will be.
Shiba Inu, like many other cryptocurrencies, has proven to be extremely volatile in the past. Its value has risen and then fallen, but it is doubtful that SHIB will ever reach $1 or perhaps even $0.001 because its circulating supply remains so large – even after Buterin burned 45 percent of the supply.
It has had some success in terms of market cap in the past, including striking Dogecoin at times in 2021. However, it has recently dwindled, falling to 16th on CoinMarketCap’s rankings.
Robinhood shiba inu burn may never reach $1, but the progression of its ecosystem has secured its future. Shiba Inu can remain truly decentralized as well as continue to develop its network thanks to the new tokens, particularly BONE.