Despite the rather bearish price action of Shiba Inu (SHIB), the burn rate has seen a huge increase in March compared to the previous month of February. As Bitcoinist reported, the still relatively unknown Koyo project, which is built on Shibarium, is one of the driving reasons for this trend.
So far, little is known about the project except that it will be built on Shibarium and is a decentralized finance project that aims to provide a platform where users can access defi applications such as lending, borrowing, and staking.
Koyo Will Burn 50% Of Its Revenue In Shiba Inu
The platform’s native cryptocurrency is the Koyo token, which serves as a means of payment on the platform. In addition, the Koyo project is currently attracting attention, especially with its SHIB burns. As of Monday, the project had burned a whopping 4.631 billion Shiba Inu tokens, which was equivalent to about $50,000.
And Koyo isn’t stopping there. On Tuesday, Koyo burned another 733.02 million SHIB. The tokens were transferred to Shiba Inu’s dead wallet. This means that Koyo is once again responsible for the bulk of yesterday’s SHIB burn. As SHIB Burn reports, over 758.95 million Shiba Inu were burned in the last 24 hours – about only 25 million SHIB by other entities.
A look at Etherscan reveals that Koyo’s address still holds 311.68 billion SHIB worth around $3.4 million. With this, Koyo could contribute significantly to the revival of SHIB burns. Koyo founder Kintano gave a hint about this via Twitter today. He said that Koyo will use 50% of its earnings to burn SHIB:
There is nothing more expensive than something free. #KoyArmy x #ShibArmy for now. I leave you with this.
For every $ earned by Koyo Token on its platform, 50% of SHIB will burn Revelation is soon upon you all!
無料のものほど高価なものはないThere is nothing more expensive than something free#KoyArmy x #ShibArmy for now I leave you with this
For every $ earned by @KoyoToken on its platform, 50% of $SHIB will burn
Revelation is soon upon you all! https://t.co/CyGgZfh9nV pic.twitter.com/KtvEPJUmfA
— Kintaro (@KintaroStrength) March 22, 2023
In the past month of February, a total of only 352.21 million SHIB were burned in 128 separate transactions through community-led burn initiatives. Compared to the previous month of January, this represented a significant decrease – approximately 1.12 billion were burned in 223 transactions.
Prior to February, the burn numbers looked much better as well: December 2022 saw 2.072 billion SHIB burned in 349 transactions, November saw 1.922 billion SHIB burned in 381 transactions, and October saw 9.05 billion SHIB burned in 2,433 transactions.
SHIB Price Faces Crucial Moment
In the 1-day chart, SHIB is currently facing a critical moment. The price is trying to break out of the downtrend channel that has been in place since the beginning of February, while the next step is to break the 200-day Exponential Moving Average (EMA) just above it in order to escape bearish territory.
The 200-day EMA currently sits at $0.00001173, and a daily close above this price could confirm a medium-term uptrend for SHIB.
Featured image from Analytics Insight, chart from TradingView.com
