Shiba Inu (SHIB), the popular doge-themed cryptocurrency, has been caught in a tug-of-war between a massive token burn and a broader market downturn. The price has plunged over 10% recently, raising concerns about the meme coin’s future.
Burning Bright, But Price Takes a Dive
On a positive note, the SHIB burn rate skyrocketed by a staggering 12,842% according to Shibburn, a platform tracking SHIB token destruction. This burning process removes tokens from circulation, potentially increasing the value of remaining tokens. The Shiba Inu community burned a significant amount (12.04 million) through various transactions, with one wallet contributing a whopping 10.15 million SHIB tokens.
This dramatic reduction in supply has some investors optimistic about a future price surge. In basic economics, a decrease in supply with stable or growing demand often leads to price increases. However, the current market sentiment seems to be telling a different story.
Downward Trend Persists Despite Community Efforts
Despite the record-breaking burn rate, the SHIB price continues to slide. The coin has dipped below crucial support levels, currently hovering around $0.000018, and could fall further if it doesn’t recover soon. This price decline is accompanied by a significant long liquidation of over $22 million in the past 24 hours, indicating a potential investor exodus.
Also Read: Shiba Inu To The Moon And Beyond? Dev Hints At Impactful Future
Investor Sentiment Takes a Hit
Investor sentiment towards SHIB has also taken a beating. Earlier this year, the market experienced a fear-of-missing-out (FOMO) frenzy, driving investors towards altcoins like SHIB. However, the current trend suggests a shift towards risk aversion, leading to exits from large-cap altcoins like Shiba Inu and Dogecoin.
The Road Ahead for SHIB
The future of Shiba Inu remains uncertain. While the community’s burning efforts are commendable, the broader market downturn and negative investor sentiment pose significant challenges. Whether SHIB can overcome these hurdles and rebound will depend on various factors, including overall market recovery and the community’s continued support through burning initiatives.
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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