Shib has progressed from its status as a meme coin to becoming a part of a number of mainstream partnerships and being accepted as a payment mechanism by a number of payment service providers. As a result, in order to achieve that position, SHIB focused on becoming more sustainable.
One of the most important components of cryptocurrency is its supply, and excess supply always keeps the asset’s price low because the rarity factor is lost in their case.
That was also the case with SHIB, but with the implementation of the burn mechanism and the burning of nearly half of the SHIB supply, it is slowly regaining investor interest.
As it is, the token’s most powerful weapon is its social presence, and adding rarity simply added to the asset’s appeal.
In order to achieve that goal, crypto exchange services offer a NOWPayments-enabled burn feature for merchants, allowing them to burn anywhere from 0% to 100% of their profit.
Those who choose it will contribute to the overall supply burned, which has been steadily increasing since the initial SHIB burn of 410 trillion.
In August, September, and October, the highest burn was recorded, with a total of 9 billion SHIB. However, since November, the same figure has dropped to 1.1 billion due to a lack of investor interest after SHIB collapsed by 74%.
Despite the February rally, SHIB has dropped. And it’s currently up 15% from its local low point.
Regardless, increased bullishness this month appears to have re-energized investors.
On-chain transactions peaked in November, when 133k transactions were completed in a single day.
Daily active users and transaction numbers have risen steadily since then, peaking last week on March 16th. This reawakened the investors, who are now transacting at a rate of 14k per day on average.
As a result, Shiba Inu’s total burned supply hit a five-month high of 4.4 billion SHIB this month.
As a result, if on-chain elements perform well, investors may become more bullish. In fact, an increase in daily active addresses might be beneficial to SHIB’s price movement.
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