Shiba Inu
Shiba Inu burn rate spikes over 50%: What does it mean for SHIB?
The rise in tokens burned has not helped SHIB rise but a slow recovery may be close.
- While the burn rate increased, SHIB’s price fell by 3.86%.
- A decrease in circulation and social dominance indicated a possible entry for the token.
The number of Shiba Inu [SHIB] tokens burned in the last 24 hours has increased by 56.16%, data from Shibburn showed. A day before this figure decreased, and was less than 40 million tokens.
The major aim of Shiba Inu burning is to increase the value of the tokens in circulation by creating scarcity. This way, SHIB can tackle inflationary pressure.
Therefore, the recent increase suggests that SHIB might avoid another plunge. However, it is not all the time that the token price rises when the burn rate jumps.
In some instances, SHIB moves sideways. Other times, the price declines.
Source: Shibburn
SHIB fails to go with the trend
As of this writing, SHIB’s price has lost 3.86% of its value. This happened within the same period the number of burned tokens increased, indicating a next-to-nothing effect on the memecoin’s value.
However, AMBCrypto checked Shiba Inu’s social dominance to see if there had been any changes. Social dominance measures the rate of discussions about a project when compared to other top 100 assets.
At press time, on-chain data
from Santiment showed that the metric dropped slightly to 0.677%.This decline was a testament to the fact that traders might be overlooking SHIB and concentrating on other projects for now.
From a price perspective, this presents a potential buying opportunity before the price jumps. Should the price of the token begin to rise, social dominance might also increase, and this could be a case of FOMO.
FOMO stands for Fear Of Missing Out. It happens when attention moves to a project after the price must have appreciated by a significant percentage.
Those who engage in this might either get burnt by a correction
or be left with crumbs of gains.
Source: Santiment
Price may lay back for a while
But AMBCrypto does not expect the big move to happen in the next few days. However, a surge in buying pressure could confirm the upswing.
If this is the case, SHIB might begin a race that sets it above $0.000030. Furthermore, the one-day circulation dropped to 447.71 billion.
Two days before that, the metric was over 1 trillion. Circulation measures the number of tokens used in transactions within a given period.
With the decline, SHIB might not have to deal with intense selling pressure. Hence, this could offer some stability for the price.
Source: Santiment
Realistic or not, here’s SHIB’s market cap in DOGE terms
In a bullish scenario, the decrease could cause SHIB’s price to go on a steady uptick, meaning the potential move to $0.000030 could be possible.
However, activity on the Shiba Inu network has been decreasing, indicating that the potential rally could take some time. But if the 24-hour active addresses begin to rise again, the price of SHIB might follow.
