In recent weeks, Shiba Inu (SHIB) enthusiasts had high hopes for the Shibarium burn portal, which was introduced with the promise of accelerating SHIB token burns. Initial reports were promising, with over 3.2 million SHIB tokens burned right after its launch. However, since then, the portal’s activity has come to a screeching halt, raising doubts about its effectiveness and reliability.
Shibarium Burn Portal – A Lackluster Performance
The Shibarium burn portal, branded as Shib Torch, aimed to streamline and enhance the burn process for SHIB tokens. Despite its promising start, recent reports suggest that the portal has failed to register any new burns. This stagnation has sparked concerns among the Shiba Inu community about whether the portal is functioning as intended. Some speculate that the portal might not be accurately tracking burns or might be experiencing technical issues.
Burning Beyond the Portal – A Surge in SHIB Burn Rate
Contrary to the portal’s stagnation, data from Shibburn indicates that SHIB burns have been thriving through other channels. In the last 24 hours, the burn rate has skyrocketed by over 400%, with more than 14.2 million SHIB tokens incinerated. This sharp increase in burn activity follows a week-long trend where over 312.6 million SHIB tokens were destroyed, marking an impressive 80% rise in the burn rate.
Despite the portal’s questionable performance, this surge in burn activity is a positive development for Shiba Inu’s supply dynamics. Higher burn rates can potentially decrease the token’s circulating supply, which might support price stabilization and long-term value appreciation.
However, the increased burn rate has not translated into significant price gains for SHIB. Since June, Shiba Inu has consistently traded below its long-moving average, which has acted as a formidable resistance level. Recent price movements show SHIB fluctuating between modest gains and losses. On September 4th, SHIB saw a nearly 4% increase, only to reverse with a 3% decline in the subsequent session.
As of the latest data, SHIB is trading around $0.00001318. The persistent inability to break above the long-moving average reflects ongoing bearish sentiment and highlights the challenges Shiba Inu faces in reversing its downtrend.
Also Read: Shiba Inu Dips Below $8B Market Cap – Transaction Volumes Plummet 67% Amid Ongoing Downtrend
The Road Ahead for SHIB
The stalling of the Shibarium burn portal coupled with the ongoing volatility in SHIB’s price underscores the complexities facing the Shiba Inu ecosystem. While the overall burn activity remains robust, the disconnect between the portal’s reported burns and actual burn data raises questions about its utility and effectiveness.
For SHIB to reclaim upward momentum, the community and developers might need to address the portal’s issues and explore additional strategies to drive both burn activities and price stabilization. As always, investors should stay informed and cautious, considering both the potential benefits and risks associated with Shiba Inu’s evolving landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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