Godfrey Benjamin
Shiba Inu (SHIB) price cools off despite burn rate staying elevated
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Shiba Inu (SHIB) is cooling off from the parabolic run of the past few days. Despite its ongoing price consolidation, the protocol is still maintaining a very robust burn rate outlook. Data from Shibburn shows the burn rate has jumped by another 323% as a total of 68,119,115 SHIB tokens have just been sent to dead wallets.
This significant SHIB burn figure underscores the determination of the protocol to continually reduce its circulating supply which, at the moment, is pegged at 579,894,208,190,775 SHIB. With the current burn figure, the total number of SHIB tokens sent to inactive wallets thus far comes in at 410,644,055,132,456 SHIB tokens.
The burn rate figures recorded from earlier in the week are often accompanied by bullish price action. The meme coin has notably decoupled from this trend as its price is effectively pegged at $0.000007854 after shedding 1.54% overnight, a showcase of quivering buyers dominating the scene.
Though the burn rate figure shows promise, it might not be considered a factor worthy of shielding the token from paring off the more than 13% gains it has inked in the trailing week period.
Key trends to watch for SHIB
As the transactions on Shiba Inu and its ecosystem tokens grow, we are bound to see more allocations to burning. While the impact on the burn rate in the short term might not be as efficient as expected, this particular metric is considered vital for the future of the protocol.
In fact, sustaining the valuation of Shiba Inu in its bid to nurture SHIB’s price until it hits a $0.01 figure is a collective effort that must encompass burning and a sustained rise in demand.
This is where Shibarium comes in. With the push to onboard more decentralized applications (dApps), over time, Shibarium is projected to play a crucial role in serving as a conduit to deflate SHIB’s supply, as a portion of transaction fees generated will be sent to dead wallets.
About the author
Godfrey Benjamin
Credit: Source link
