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Shiba Inu owes a huge part of its success to coin burning – 41.03% of its success, to be exact.
It was a Shiba Inu coin burn last year that gave SHIB its first all-time high.
In 2022, Shiba Inu investors are hoping that coin burning will soon take SHIB to higher highs than ever before.
Here's a quick look at the math:
From this quick example, roughly doubling the Shiba Inu burn rate would give your portfolio a 179% increase regardless of demand.
There's just one problem.
The Shiba Inu burn rate has only increased 0.01% in over 12 months.
Enter EverGrow – the hyper-deflationary token that's already burned much more than Shiba Inu and it's not yet reached its first birthday.
To understand EverGrow, we first need to understand Shiba Inu coin burning.
Here's a quick synopsis:
Here's the problem with Shiba Inu burning: it's decentralised.
This means that investors need to either destroy their own Shiba Inu assets or find ways to incentivise others to destroy theirs.
This comes at a cost.
In the last week of July 2022, for example, 1.13 billion SHIB was burned via 122 individual transactions worth a total of $13,500.
In context, to double the Shiba Inu burn rate to 80% would come with a personal cost of over $3 billion.
EverGrow is a hyper-deflationary token.
What does that mean?
It means EverGrow was designed with coin burning in mind, and the process happens almost automatically via smart contracts.
To understand this, we need to look at the transaction tax on EverGrow:
While 2% might not seem a large amount to designate to coin burning, bear in mind that EverGrow has averaged a daily trading volume of $3,619,000 since its launch in September last year.
That means, on average, around $72,380 is collected for buyback and burn every day – i.e. more than 5x the amount of Shiba Inu burned throughout a week in July.
The problem with Shiba Inu coin burns is the burn rate slows as SHIB gets more expensive.
Why?
Because it costs more to burn Shiba Inu tokens.
EverGrow does not have this scalability issue, because coin burning is dependent on daily trading volume – it's not dependent on convincing investors to burn part of their own stash.
This fact is behind the reason why LUNC holders (i.e. the people who held their Terra Luna through the collapse in mid May) voted to implement a burning tax.
The 1.2% tax on all LUNC transactions is seen as the fairest way to burn LUNC to raise prices long term without requiring a small group to sacrifice their investments for the greater good.
Yes and no.
Remember: Shiba Inu is decentralised. There's no core development team in charge of the project.
This was a problem the unofficial lead development team (@shibtoken on Twitter) encountered in July as SHIB investors complained about the new ShibaSwap burn portal.
The burn portal launched in April and was supposed to reward anyone who burned their SHIB with Ryoshi tokens at a fixed APY.
Except that, rewards have been far fewer and much slower than anticipated.
While @shibtoken acknowledged the frustration, they said it was out of their hands because a separate project – Ryoshis Vision – managed the burn portal.
Other projects like the Shiba Inu Coffee Company and Wendy's burn SHIB with a % of their projects. While exciting, these projects need to scale if they are to make a significant dent in the Shiba Inu burn rate.
EverGrow is still a small cap cryptocurrency ($85 million on August 1st).
Coin burning is only useful if there is continued demand to drive a cryptocurrency's prices even higher.
But EverGrow is an exception to this rule.
The 8% cut of the 14% tax designated for BUSD rewards has paid out more than $37.5 million to investors' crypto wallets to date. These are rewards paid in a stablecoin (BUSD) rather than the native $EGC token.
EverGrow has already become the leading reflection token paying stablecoin rewards in crypto.
Because of the high taxes on buying and selling, the idea is to buy EverGrow and earn a return on investment via BUSD rewards – not from selling $EGC at a higher price.
For example, had you invested $5,000 into $EGC at the beginning of October last year, you would have made $12,800 in BUSD rewards right now.
That's stablecoin passive income. Paid daily into your crypto wallet. Without touching the underlying asset.
BUSD rewards are dependent on daily volume, which reached a peak of $60 million last year, and is currently around $250,000 during the devastating crypto bear market – however, EverGrow is fast gaining investors thanks to core fundamentals and a robust road map.
EverGrow is likely to continue gaining attention and rapidly grow from where it is today. In October last year, it hit a market cap of over $1 billion – during the next bull market, EverGrow is likely to go even further.
As a small-cap cryptocurrency with huge potential, EverGrow could be a great asset to diversify your portfolio.
That's why if you love Shiba Inu coin burning, you'll love EverGrow too.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
