Categories

Shiba Inu Still Below $0.001 Despite +1000% Burn Rate: Here’s Why

Shiba Inu Still Below $0.001 Despite +1000% Burn Rate Here’s Why

The value of a Shiba Inu has dropped by around two-thirds so far this year. Additionally, it would appear that the meme token has lost the majority of its followers. Where will SHIB go from here? In point of fact, there is still a ‘final’ chance. More token investors are burning Shiba Inu tokens. The question of whether or not the alternative token can reach $0.001 in value persists.

Pup Blazing

While this content was being published, Shiba Inu battled to regain its lost spot, resulting in a further 4% drop in popularity (Coinmarketcap data). The price of one alternative token is currently $0.00000109. Despite the fact that the cost was not justified, the Shiba Inu community went all out in the process of burning token supplies.

The SHIB burn rate reached triple digits at one point, reaching 1,031 at one point in time. This information comes from a tweet sent by ShibaArchives. During the time that this article was being written, the burning rate was shown to be hovering somewhere around 800% on the official website of Shibburn. Despite the market’s downward trend, the extraordinary burning rate has been the primary topic of discussion within the cryptocurrency community.

Keep in mind that any kind of burning cuts into the available Shiba Inu population. The ongoing burning of tokens may have an effect on the price of the token, presuming that demand for the cryptocurrency does not decrease. To what extent, though, is burning necessary before price movements can be triggered?

In point of fact, there is still a significant amount of SHIB burn to go before the alternative reaches the peak of its burning. Due to the fact that the figure was destroyed, we now have a more accurate total of 129.4 million Shiba Inu, which is equivalent to $1,430. However, within the past week, investors sent a total of 318.7 million tokens to addresses that were known to be invalid.

In addition, the token-burning campaign that Shiba Inu ran (about two weeks ago) reached a new rate high after just forty-eight hours two. A little under 200 million tokens were destroyed by the currency. And because of that, the rate of burning increased by close to 3,000%.

WHY?

The question that has to be answered is why SHIB’s price is not skyrocketing. The increased burn rate prevented the consumption of more than 10.4 billion Shiba Inu, which is equivalent to $115,000, in the span of the three months. In addition to that, net exchange deposits continued to be greater than the seven-day average (CryptoQuant data).

This could be an indication of greater competitive pressure to sell inside the market. And that was a factor that contributed to the price going down. While all was going on, the price of bitcoin made some amazing changes inside the previous day, climbing 4.78% to regain the important $20,000 milestone. During the time that this blog post was being written, the transaction price for the most valuable cryptocurrency in the world was $20,118.78. The alternative cryptocurrency market responded with price increases within that time frame.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.