Recently, the world’s second-largest memecoin by market capitalization, Shiba Inu ($SHIB), has seen a steep decline in its burn rate.
The concept of SHIB burns was one of the unique selling points that attracted many investors to Shiba Inu. In this sense, “burning” a cryptocurrency means that a portion of the coins are sent to an unusable account, effectively removing them from circulation.
This reduction in supply can lead to an increase in the price of the remaining coins, assuming demand remains constant.
However, the recent drop in the burn rate of Shiba Inu coins has caused concern among some investors. The burn rate is the rate at which coins are removed from circulation. A lower burn rate means that fewer coins are being withdrawn from circulation, which could potentially affect the price of the coin.
Shibarium Continues To Fail At Helping Shib Burns
One of the most disappointing aspects of the Shibarium, a layer-2 blockchain that was heavily marketed as a platform that would have a serious impact on SHIB burns, is the fact that up until today it has failed to burn a single token.
In fact, according to data from Shibburn, Shibarium could still be decades away from being able to affect the token-incineration rate.
To be able to perform a burn, Shibarium would have to allocate $25,000 worth of $BONE from in-chain transactions. After 3.5 months and nearly 4 million transactions, Shibarium obtained less than twenty dollars worth of $BONE.
$SHIB Falls After Bullish Week
After reaching its second-highest value in 2023, at $0.000001072, the asset suffered a steep fall of minus 8% in 24 hours.
On top of investor pessimism due to the slowing burn rate, SHIB was also negatively affected by the recent news about Binance CEO Changpeng Zhao stepping down after the company settled a $4 billion lawsuit with the U.S. Department of Justice.
However, data from IntoTheBlock reveals a dim future for crypto. According to the cryptocurrency analysis platform, nearly 80% of SHIB holders are holding less than their initial investment was worth.
Golden Inu Gaining Value Ahead of New dApp Launch
Meanwhile, rival memecoin project, “Golden Inu” is currently on a bullish high. Great news for investors of the Shiba Inu Killer.
Over the past week, $GOLDEN [BEP-20] gained 23% in value, due to anticipation about its new game “Golden Inuverse”, coming on December 25th.
At this time of writing, the currency also suffered the outcome of the Binance-DOJ debacle, but differently from the rest of the market, $GOLDEN is already showing signs of a rebound. After its decline, the asset has already grown nearly 3% over the past hour.
Upcoming Game on December 25th
The recent increase in interest is due to growing anticipation towards Golden Inu’s upcoming game “Golden Inuverse”. The new multiplayer Play-To-Earn game will be available to the public on Christmas Day and is generating a ton of hype due to the potential for rewarding players with $GOLDEN rewards.
The community of Golden Inu is highly optimistic about the potential impact of the $Golden Inuverse on the token’s value. The token witnessed a remarkable surge of over 1,200% in its value following its listing on prominent platforms such as CoinMarketCap in June. This significant increase in value, triggered by a mere listing, has led many to speculate that the launch of Golden Inuverse could instigate an even more substantial rally.
New Game and New Token-Burning Mechanism
Alongside the launch of the game, Golden Inu will also reveal its new token-burning mechanism named “Golden Treasury”.
The Golden Treasury is designed to operate by directing half of the profits from all Golden Inu decentralized applications (dApps), including Golden Inuverse, towards a buy-back and burn initiative. This strategic mechanism will consistently eliminate $GOLDEN from the market, potentially exerting significant deflationary pressure and propelling its value upwards.
