The successive burning of Shiba Inu tokens leads to another record. In the month of May alone, over 31 billion SHIB were transferred to dead wallets.
Supply is shrinking
Shibburn.com recently published information on the monthly number of SHIB burns. As it turns out, the supply decreased by an absolute record of 31,059,157,423 pieces. In May, to which the latest statistics relate, 1,331 transfers to dead wallets occured. The total value of burned coins is 18% higher than in the previous month, when 26,109,968,050 SHIBs were burned.
It is worth mentioning here that “burning” is a conventional nomenclature. The process of reducing the supply of tokens involves sending them to dead wallets. These are paths with no way out. Any SHIB that find their way inside are unable to return to the market, which successively reduces the market supply.
The burning of Shiba Inu is happening for a reason. SHIB token holders are motivated by the profits they can make from the process. We’re talking about the ShibaBurn rewards they receive in return.
When Ryoshi Vision officially announced the first distribution of ShibaBurn, the burning process accelerated dramatically. Thus, one mysterious wallet got rid of 10 billion SHIB, worth $124,300 at the time of the operation.
Thanks to Travis Johnson of SHIB Burn Games, a new way to burn SHIB tokens was also created. SHIB Super Store has been accepted into the Amazon affiliate program and as a result it is now possible to burn tokens through Amazon.
By the way, SHIB Burn Games organized 3 Burn Events in the month of May. With their help, 386.1 million SHIB tokens were burned from the market.
SHIB’s reaction to the burn
Despite this very positive news, the SHIB token closed the month of May at $0.00001147, which is a 30% rebound from the bottom reached on May 12 and a drop of over 85% from the ATH. At the same time, on the SHIB chart we can observe a bearish divergence, and on the Stochastic RSI overbought, which has the right to cause pressure for further deepening of declines.
These data may indicate that the burning processes of Shiba Inu, even in such large quantities, do not affect the short-term movements in the value of the coin. The key may turn out to be the long-term perspective, where depleting supply, with potentially growing demand, has the power to completely reverse the current chart pattern.