- Shiba Inu’s price surged 60% over the past four weeks.
- A spiking token burn rate is behind Shiba Inu’s increasing demand.
- The ongoing Shibburn reinforces a pattern that started with Vitalik Buterin in 2021.
WallStreetBets founder Jamie Rogozinski has attributed the recent surge in SHIB’s price to the Shiba Inu team’s relentless token burn campaign.
According to Rogozinski, the leading memecoin project has reinforced the idea that scarcity can boost demand after the latest burn exercise propelled SHIB’s price to a seven-week high.
From FOMO to a “burn baby burn” mania
Rogozinski believes that the Shiba Inu token burn exercise highlights the potential of deflationary tokenomics. According to him, the event transforms the more common Fear of Missing Out (FOMO) into a “burn baby burn” mania, highlighting how the crypto community reacts to massive token burns.
The WallStreetBets founder noted that news of a supply reduction tends to drive demand for an asset. He cited SHIB’s latest price action, where a recent token burn coincided with a 3% price surge, as a clear example of this dynamic.
Related: SHIB Burn Explained: Everything to Know About Shiba Inu Coin Burning
This trend also echoes a major event in 2021 involving Ethereum’s co-founder, Vitalik Buterin, who sent over 410 trillion SHIB tokens to a dead wallet, an act that preceded the rally to its all-time high.
SHIB’s burn rate recently spiked by over 470%
Meanwhile, Shiba Inu has sustained its token burn exercise over the past few months with skyrocketing burn rates that reflect the memecoin project’s commitment to reducing its token supply. The project removed 636.68 million tokens from circulation on Monday, causing its burn rate to spike 478.9% in just a few hours.
Related: Shiba Inu and Dogecoin Struggle as Ethereum Strengthens Above $3,700
For context, SHIB’s price surged about 60% over the past four weeks, rallying from $0.00001005 to $0.00001598 during this period. However, a broader altcoin market pullback triggered a decline in Shiba Inu’s price, which is down 15% from the recent high at the time of writing, according to data from TradingView.
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