The growth of both Shiba Inu and LUNC tokens has been hampered by the fact that their circulating supplies are incredibly large. As a way to curb this, both communities came up with burn plans to reduce token supply as much as possible. So far, community members have sent a significant amount of tokens to burn addresses. But which community efforts have had the greatest impact on token prices?
The LUNC community hit $85 billion.
The LUNC community burn has received a lot of attention since it began about a year ago. Millions of tokens are being removed from circulation in an effort to reduce the supply of over 5.8 trillion tokens each week. This has resulted in tens of billions of tokens being burned so far.
According to the LUNC Metrics website, the community was able to achieve its goal of burning 85 billion tokens. This comes after more than 1.7 billion tokens were burned from the community in just one week, bringing the total number of tokens burned over the entire period to approximately 85 billion.
On the strength of this milestone, the prices of LUNC and USTC began to rebound once again, suggesting a correlation between burns and price performance. Not only are the Terra Classic ecosystem tokens rallying, but the rebranded LUNA token is also on the rise.
The LUNC burn plan has received much support from the Binance exchange, which continues to burn fees generated from altcoin trading activity. Burning has also extended to USTC tokens, with thousands of coins being burned every day.
SHIB bulls show strength | Source: SHIBUSD on Tradingview.com
Shiba Inu burns 2875%
Compared to LUNC burning, Shiba Inu community burning had more impact on prices. Unlike LUNC, approximately 45% of the total token supply was burned. Much of this can be attributed to Ethereum founder Vitalik Buterin, who received half of the SHIB token supply in 2021. Buterin eventually burned most of his tokens after donating some to the Corona Relief Fund.
But that hasn’t stopped the community from trying to reduce supply. Last week we saw one of the biggest spikes in burn rates after rising by more than 7.6 million per cent in 24 hours. This increased burn momentum continued into the new week, with Sunday’s figures showing over 152 million tokens were burned.
This 152 million figure represents a further 2,875% increase in SHIB burn rates and starts the week on a high, according to data from Shibburn. The majority of tokens burned came from a single wallet that burned 107.6 million tokens in a single transaction.
However, unlike LUNC, the spike in SHIB burn rates does not appear to have had a significant impact on the price, with the token trading close to breakeven during the same period.
Featured image from Analytics Insight, chart from Tradingview.com