Shiba Inu is burning tokens at the slowest rate all year.
Just 661 million SHIB entered burn addresses in November, down from 882 million SHIB in October. It’s a drop from May six months earlier when 31 billion Shiba Inu was burned – 47x more SHIB.
The 661 million SHIB burned is worth $6,150. It’s 0.00012% of the circulating supply.
Meanwhile hyper deflationary tokens like EverGrow are growing in popularity for their innovative burn mechanisms.
EverGrow burns 4,085x more tokens than Shibu Inu
EverGrow burned 4,085x more tokens than Shiba Inu in November.
Here’s a comparison of burning in November as a percentage of circulating supply:
- EverGrow burn in November: 0.6% of circulating supply
- Shiba Inu burn in November: 0.0001% of circulating supply
So what’s the impact?
Burning tokens reduces supply, which leads to higher prices when demand increases. A case in point is Shiba Inu. In May 2021 that Vitalik Buterin burned 41.02% of the SHIB tokens in a single transaction.
From May 1st to May 12th the price of Shiba Inu shot up 50,000%. Had you invested just $100 at the beginning of the month, you’d have made $50,000 in two weeks.
EverGrow launched a year ago with a plan to take Shiba Inu’s incredible burn track record and automate it.
How does EverGrow burn so many tokens?
EverGrow charges a transaction tax of 14%, split as follows:
- 8% converted into BUSD and distributed among all wallets ($38+ million paid to date)
- 2% to burn tokens (28 trillion burned in last 12 months, or 6% of circulating supply)
- 2% for ecosystem development (NFT marketplace launched)
- 2% to fund liquidity (you can only buy EverGrow on PancakeSwap using BNB or BUSD)
The tax might seem a lot, but EverGrow has an innovative mechanism to keep on burning tokens. It hopes to recreate the Shiba Inu price spike – and scale it.
EverGrow launched an NFT marketplace in September called LunaSky. It’s the first marketplace in crypto to send 100% revenue towards burning – in this case, EverGrow.
In November, around $12,500 per day has been buying and burning EverGrow. The EverGrow price has risen 43%.
Shiba Inu has no automated burn mechanism. Investors burn their own tokens. The lead development team announced the Shiba Eternity game would send 5% of revenue to burning SHIB, but an uptick in the burn rate has not been seen.
Will EverGrow’s burning mechanism soon lead to a price spike?
If it works, this could be a new development in DeFi. A token whose price is determined not just by markets, but by ecosystem revenue.
Read more about EverGrow today.
