Shiba Inu price down, but its burn rate gives confidence about its future price growth
Given the significant drops in price being observed in crypto assets across the board, today on the cryptocurrency market is proving to be a day that many market participants are not looking forward to. Meme coin Shiba Inu is one of the worst losers right now, but it has a growing measure that makes up for it: its burn rate.
Shibburn, an analytics tool, reports that the Shiba Inu burn rate increased by 840.49% in the last 24 hours. This burn rate opposes the token’s price, which has fallen by more than 13% week-to-date and by 1.26% over the last day to $0.00001106.
The burn rate and price movement often trend in opposite directions, but what is frequently common is what the trend can lead to in the short run. The rising burn rate indicates that more Shiba Inu transactions are taking place on the network, producing enough fees to burn.
Growing transactions indicate that more SHIB is being bought, and this suggests that if this trend continues into the near future, the price may change its course, as we have seen in the past.
Shiba Inu has a chance to reverse its price movement, but it must be able to defeat the market, which is the stronger power at work in this situation. The biggest issue here is still the Bitcoin effect. If the overall crypto ecosystem experiences a change in speed, there is a good probability that Shiba Inu’s bulls will follow suit.
In addition to this on-chain statistic, the Shiba Inu ecosystem contains many other key components, including Shibarium, the ecosystem’s much-awaited Layer 2 protocol, which has the power to spur the growth of the token.
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