Shiba Inu is a popular dog-themed meme coin and investors are actively watching its price movements. This cryptocurrency has caused quite a stir in the world. cryptocurrency markets With its recent volatility, Shiba Inu's burn rate suddenly spiked, surprising some traders.
So what's going on with SHIBA? Is it time to buy? And what are the analysts' forecasts?
The current price of the SHIB token is $0.0000174, up 1.95% on the day. Moreover, its market cap stands at $10,258,123,669, while the trading volume reached $242,185,231. Meanwhile, the circulating supply of the coins is 583,382,557,304,548.
Although the price of the cryptocurrency is now on the rise, it has lost 10% in the past week. This indicates the strong volatility of the market, which is still continuing despite the token's recovery. Therefore, analysts warn investors to be careful with their investments in SHIB to avoid losses if the price starts to fall again.
This meme coin reached its all-time high of $0.00008845 on October 28, 2021. Since then, the price has declined by 80%. However, over the past few sessions, the Shiba Inu coin burn rate has skyrocketed, increasing by 500% in one day.
SHIB/USD 5-day chart
What is the burn rate of a Shiba Inu?
Cryptocurrency burning refers to the action of destroying tokens to decrease their supply, which in turn causes their value to increase. For example, if there are only 1,000 SHIB on the market, their price would skyrocket much more, compared to 10,000 SHIB. The rarer the item, the more desirable it becomes.
The burn rate refers to the speed at which tokens are destroyed, and in this case, it is truly impressive. Shibburn reported that a total of 60,380,203 tokens were removed over the past day.
According to the news, the Shiba Inu burn rate fluctuated between 500% and 700%, even reaching 1947%. In addition, 135,026,217 tokens were burned during the past week. These tokens are no longer in circulation and are distributed in so-called “dead wallets”.
The token’s creators are attempting to reverse the price trajectory with this drastic move, hoping that its value will increase as the total supply decreases. At the same time, the news about the launch of the ethereum ETF shocked the cryptocurrency markets, drawing more attention to digital assets.
As a result, the SHIB burn rate has spiked by 482.88% over the past day. This indicates a renewed interest in the token. However, it is unclear whether the previous week’s activities influenced this burn rate. However, the burn rate has continued somewhat erratically.
Shibburn reported that during the latest round, five different wallet addresses took the most active part: each of them sent over 9,999,999 tokens to inactive wallets. To date, the memecoin ecosystem has burned a total of 410,727,706,468,542 tokens. But what about the Shiba Inu burn rate in 2024? In January alone, 9.9 billion tokens were destroyed, and the burning continues.
Will SHIB Price Increase in the Coming Months?
Contrary to investors' expectations, the token's price has not seen a significant increase so far, despite its burn rate reaching 800% this year. As a result, analysts are hesitant to predict major changes.
While the recent volatility has confused markets, it is clear that even this substantial destruction of memes was not enough to boost its price. On Tuesday, the token lost more than 2.45%. Today it recovered, but not by much.
Furthermore, SHIB has been volatile over the past month, with its price dropping to $0.000012. It then recovered and even reached $0.000020 at one point before stabilizing around $0.000017.
As we have mentioned, historically, Shiba Inus' attempts to increase the price by decreasing their total supply have not been successful. It remains to be seen whether the latest move plays in their favor or if history repeats itself.
Stay tuned for more information on SHIB coin price movements and other crypto news!
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(tags to translate)SHIBA INU
