Ethereum keeps climbing toward new heights – today, seasoned cryptocurrency veteran reporter Omkar Godbole at Coindesk provides a bit of detail on potential current price rises for the dominant smart contract blockchain.
“Ether (ETH) clocked a new all-time high on Friday as blockchain data showed that smart contract blockchain Ethereum burned more tokens than it emitted in the last 24 hours,” Godbole writes. “The native token of Ethereum’s blockchain rose to $4,402 during Asian hours, topping the previous record high of $4,379 reached in May.”
One element Godbole mentions as central to Ethereum’s rally is the use of Shiba Inu or SHIB.
Originally developed as a meme stock, Shiba Inu has become a useful part of the crypto ecosystem through a practice called ‘burning.’
Essentially, SHIB holders can effectively burn Ethereum by proxy.
Coin burning refers to the process of removing tokens from circulation and is the crypto market’s equivalent of a stock buyback.
The process seems to be characterized this way – since SHIB is an Ethereum-hosted ERC-20 token, burning SHIB also burns ETH.
And there’s been a lot of SHIB burning…
This resource written by Samuel Wan provides some of the back story, where the creator of SHIB sent a large block of the cryptocurrency (half?) to Ethereum head Vitalik Buterin. Buterin then turned around and burned it, in part to limit his clout on the blockchain.
Others began burning SHIB, too. Eventually, the coin became known as the “Ethereum killer.”
Wan also reveals why the creators intended to build SHIB on Ethereum when alternatives like Dogecoin are on different blockchains.
“The Shiba Inu ‘woofpaper’ detailed why Ethereum was chosen as the host network,” Wan writes. “The anonymous founder, known only as ‘Ryoshi,’ spoke about Ethereum being a secure and well-established network that will enable his project to evolve.”
The bottom line here for Ethereum fans is that future price action is in the cards. Godbole reports near the end of his story that Ethereum futures options for $15,000 are becoming popular. So if you have crypto holdings, think about how Ethereum may fare based on this most recent news.