HomeMemecoin NewsSHIBShiba Inu Price Hangs by a Thread Despite Massive Burn Rate Spike

Shiba Inu Price Hangs by a Thread Despite Massive Burn Rate Spike

Date:

  • SHIB clings to key support as investor sentiment weakens, and only 20% remain in profit.
  • Token burn accelerates with over 30M SHIB destroyed, boosting deflationary strength.
  • Shibarium’s rapid growth supports long-term value, but a breakdown risks a sharp decline.

Despite a surge in Shiba Inu’s token burn rate, the memecoin is close to a crucial support level. Despite the token being flat in terms of price for several consecutive sessions, it traded at $0.00001162 as of now. Its peak further in 2024 has led to a 75% decline in this level.

Data from Santiment shows that there has been a noticeably gradual decline of investor sentiment, which today stands at just 20% of SHIB holders on profit, from a high of 91% a few months ago. As the memecoin is still struggling to gain upward momentum, most of the wallet addresses have been underwater in the extended downturn in price.

Source: Coinmarketcap

SHIB Burn Rate Surges as Supply Shrinks

However, in terms of Shiba Inu’s tokenomics, the active deflationary efforts have not been affected by the price pressure. Data from Shibburn indicates an overall increase in token-burning activity. The traded volume increased by 2,671%, and over 30.1 million SHIB tokens were destroyed. One of these sent 14.5 million tokens to a designated burn address; the second user used a wallet to remove 8.3 million tokens from circulation.

Currently, there is no major deflationary asset in the meme coin ecosystem other than that of Shiba Inu and that makes it stand out. The coin has now hit its long term scarcity model by having an annual deflation rate of -0.0059%.

As of the time of writing, more than 410 trillion SHIB tokens have been permanently removed from the supply flow, which means the overall circulating amount is only about 584 trillion. The trend will continue to burn with the Shibarium network that is designed to scale by reducing the costs of transactions as well as increasing the speed.

Shiba Inu Holds Critical Support Amid Prolonged Bearish Trend

Shibarium Scan data shows that the network has had more than 1.047 billion transactions and has roughly 197.45 million addresses. Before the month ends, that number is expected to cross the 200 million mark. In addition, a portion of every transaction fee paid in BONE (the governance token of the Shibarium ecosystem) converts into SHIB, and they burned so we have deflationary press.

On the technical front, the Shiba Inu weekly chart depicts that Shiba Inu has been in the clutches of long bearish momentum. The token has dropped to its current level as it respects an ascending trendline going back to 2021 since adding a high of $0.00003335 in November. The historical support for SHIB has been demonstrated by its testing of this trendline at least six times now without breaking it.

Source: Coinmarketcap

This price zone is also important for its roll off the August 2023 low that acted as the neckline in the large double top pattern that was made a year ago. If SHIB faces a break below this level, the analysts warn there could be further fall to $0.000005840, the low from June 2023, that will make for an additional 50% drop from the current price.

Of course, Shiba Inu’s price action is as uncertain as it can get, but its on going burn initiative and altogether developing ecosystem can serve as potential long term value drivers for the coin. But for now, SHIB is hanging on to a critical support line and investors are playing it safe.

You May Also Like

Massive SHIB Rally? Why Shiba Inu May Skyrocket 500% to $0.000081

During a retail pullback, SHIB whales managed to add 1.89% of their holdings in 30 days.55.77% of recent SHIB buyers currently hold a profit margin close to $0.000013.As per...

Zypto Wallet Embraces SHIB: Shibarium and ShibaSwap Now Supported

Zypto App makes history as the first DeFi wallet to unify Shibarium and ShibaSwap in one seamless upgrade.Users can now manage SHIB, BONE, LEASH, and TREAT with improved speed,...

Shiba Inu (SHIB) Ready for Lift-Off as Whales Load Up

Whale activity in SHIB jumped 1.87% over the past 30 days.SHIB trades near $0.000013, forming a tightening breakout setup.Analysts eye $0.00008000 as SHIB’s next key upside target.After a turbulent...

Is SHIB Preparing for a 512% Surge? Inverse Head & Shoulders in Play

As the week opened, the SHIB token witnessed adverse price action, forcing its market value to nosedive to a weekly low of $0.00001151. The downtrend was, however, short-lived, as...
Muhammad Ali
Muhammad Ali
Muhammad is an experienced crypto-journalist. After five years in the field, he has become a respected authority on several top tier crypto media platforms. As a journalism and finance graduate, he plans to capture the world’s progress toward crypto and fintech industry.

Subscribe To Our Weekly Picks!

- Join over 76,000+ subscribers

- Weekly picks delivered to your email

- It's free to subscribe!

Latest Altcoin News

SPONSORED ADVERTISEMENTspot_img

Latest News Stories

Missouri Set to Become First State to Eliminate Capital Gains Tax

Missouri’s bill exempts capital gains from taxes, aiming to attract crypto investments.The tax exemption...

Celebrity Liability in FTX Collapse—Did They Really Know the Risks?

A Florida judge dismissed most claims against celebrities like Tom Brady and Stephen Curry,...

OCC Clears U.S. Banks to Launch Crypto Services Without Approval

OCC allows U.S. banks to provide cryptocurrency services without first obtaining regulatory approval.Banks can...

Astar Network Unveils Tokenomics 3.0 with Fixed Supply and Fee Burn

Astar shifts to fixed supply Tokenomics 3.0, capping ASTR at 10.5B and using exponential...

Arizona Enacts First Crypto Reserve Law for Unclaimed Digital Assets

Arizona has passed HB 2749, creating a crypto reserve for unclaimed assets held in...