**Summary:**
– The circulating supply of Shiba Inu was reduced last year due to the burning of billions of tokens.
– SHIB’s price has increased by 115% over the past year, influenced by factors such as the burning mechanism and progress in Shibarium.
**The Burning Continues**
Initially, Shiba Inu had a massive supply of one quadrillion tokens. At its launch, 50% of this supply was locked into Uniswap for liquidity, while the other half was sent to Ethereum co-founder Vitalik Buterin. Buterin donated trillions of SHIB to the India COVID-Crypto Relief Fund and other charities. He eventually burned the remaining 410 trillion SHIB tokens, valued at approximately $6.7 billion at the time, which led to a significant price rally for the meme coin. This aligns with economic principles that suggest a reduced supply with steady demand should lead to a price increase.
In 2022, the Shiba Inu team implemented a burning mechanism, allowing the community to voluntarily send tokens to a dead wallet. Last year, over 44.6 billion SHIB, valued at over $1 million, were burned. Although this might not seem significant over 12 months, continuous burning efforts are expected to increase scarcity and potentially enhance value. Recently, the burn rate rose by about 100% within 24 hours, with nearly 1.9 million SHIB sent to a null address.
**SHIB Price Outlook**
The reduction in the circulating supply throughout 2024 may have contributed to a 115% price increase from January 1 of last year to the beginning of 2025. Additional factors include a thriving cryptocurrency market, particularly the meme coin sector, and the advancements in Shibarium. This layer-2 scaling solution aims to develop the Shiba Inu ecosystem and has achieved several milestones. By Christmas, the total transactions processed exceeded 700 million, with wallet addresses surpassing 2 million.
**Twitter Update:**
The Shiba Inu community continues to reduce supply through token burns, contributing to a significant price increase. Shibarium’s ongoing development also plays a crucial role. #SHIB #ShibaInu #CryptoBurn #Shibarium
