Shiba Inu burn rate still at 4-digits, but it might not be significant fuel for price
The burn rate of Shiba Inu has recently increased noticeably. The burn rate has increased dramatically over the last day to an astounding 1,384%, resulting in the destruction of roughly 40 million tokens. Given the relatively low worth of the money destroyed, this development might not necessarily have a substantial influence on the token’s price.
Has Shiba Inu accumulated enough strength for the midterm rise?
The act of permanently withdrawing tokens from circulation by sending them to an inaccessible wallet and lowering the total supply is called “burning” a token. This tactic is frequently used to make tokens scarce and raise the value of the still available tokens. In Shiba Inu, the most recent burn resulted in the destruction of millions of tokens, although the overall value is still relatively low.
Source: Shibburn
The price of Shiba Inu has increased somewhat over the past two weeks despite the significant increase in burn rate. The meme token is trading at $0.00001, a gain of more than 8% over the past seven days. The general market rebound, which has seen numerous cryptocurrencies regain lost ground following a turbulent period, can be credited with this favorable result.
SHIB/USD 4-hour chart | Source: TradingView
In the hourly chart, the price is confined to a small range between the resistance level of $0.00001134 and the support level of $0.00001112. Suddenly movements are rare by the end of the day because most of the ATR has been covered. The volume decreases further support this claim.
Investors and traders have taken notice of the higher burn rate, but it is important to consider the bigger picture when determining how it can affect the price of Shiba Inu. Compared to the token’s total market capitalization, the value of the destroyed tokens is relatively low. As a result, the price impact right away might not be as significant.
The burn rate is only one part of Shiba Inu’s recent advancements. The meme coin has been in the news for several reasons, including the growth of its ecosystem and the increasing use of it by companies and shops. The token’s short- to medium-term price performance may be influenced by these elements as well as the ongoing market recovery.
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