Shiba Inu Price and the Burn Rate: What Should Investors Consider?
If you’ve been concerned about the recent price movements of most cryptocurrencies, you might be pleased to know that Shiba Inu has seen a 2% increase in value over the past 24 hours. However, the burn rate for SHIB has taken a nosedive, raising concerns among investors regarding the short-term price potential.
SHIB Burn Rate Plummets 98.79%
The purpose of burning SHIB tokens is to reduce their circulation, thus creating scarcity and driving up their value. While some days witness significant token burns, the past 24 hours have seen a massive decrease of 99% in the SHIB burn rate, as only 983,884 SHIB tokens were burned, raising questions about future price pressure. The initial burn on Shibarium recorded 97 million SHIB tokens, illustrating the potential for widespread fluctuations.
Over the past 24 hours, a significant decline of 98.79% in the number of tokens burned has been observed, with the total number of tokens burnt plummeting, notably when compared to the past days.
Therefore, you might have to reconsider your investment strategy in Shiba Inu tokens, considering the worrying trend of the diminishing burn rate and its uncertain effect on value.
Implications For Shiba Inu Investors
Any investor can reduce the number of SHIB tokens in circulation by sending tokens to one of the three SHIB burn addresses. Although SHIB burns are encouraging community participation, it’s important to note that the decline in the burn rate trend may raise concerns among investors about the potential impact on prices. Since October, there’s been a decline in SHIB burns, despite a 17% increase in the cryptocurrency’s price, posing a challenge for the path to $1.
Hot Take: SHIB Holds Steady But Burns Must Increase for $1 Target
Shiba Inu’s current price stands at $0.000008687, with an increase of 23.75% in the past month. However, surpassing the $1 mark will remain a challenge unless there’s a significant rise in SHIB burns to decrease the total supply, and subsequently drive up its value.
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