Connect with us
Active Currencies 14437
Market Cap $2,624,013,348,516.30
Bitcoin Share 50.19%
24h Market Cap Change $-4.10

Shiba Inu burns 798M tokens – Is this next for SHIB’s price now?

2min Read

SHIB’s negative price action signaled that demand for the asset was not strong.

Shiba Inu burns 798M tokens - Now, what should you expect from SHIB?

Share this article

  • SHIB’s weekly burn supply jumped by nearly 4x.
  • SHIB’s on-chain activity plunged, with less influx of new users.

More than 24 million Shiba Inu [SHIB] coins were kicked out of circulation in the last 24 hours, as the second-largest meme coin continued to see high burn activity.

SHIB burns, but price goes the other way

The burned supply exceeded the previous day’s figures by more than 90%, as per a recent X (formerly Twitter) update. A whopping 798 million tokens went up in smoke over the week, a nearly fourfold jump from the previous week.

Token burning has caught the eye of crypto enthusiasts, as most projects look to remove coins out of circulation for long-term value appreciation.

The removal creates a supply shock, which when matched by robust demand, could boost prices.

However, SHIB was clearly not the beneficiary lately, as the coin plummeted 20% over the week, according to CoinMarketCap. This signaled that demand for the asset was not very strong as of this writing.

SHIB sees sharp fall in network activity

These deductions were supported by SHIB’s on-chain activity.

According to AMBCrypto’s examination of Santiment’s data, the daily count of unique addresses involved in SHIB transactions plunged more than 50% over the week.

Additionally, the rate at which new addresses were getting created slowed down considerably. Just about 862 new addresses were created on the 17th of April, less than half of the count seen a week ago.

The low rate of network growth meant that the coin wasn’t gaining enough traction.

Shiba Inu network activity

Source: Santiment

SHIB in the derivatives markets

The price slump also dented speculative interest for the coin.


Read¬†Shiba Inu’s [SHIB] Price Prediction¬†2024-25


The Open Interest (OI), or the money locked in outstanding SHIB futures contracts fell 38% over the week, and more than 55% since the month began, AMBCrypto noticed using Coinglass’ data.

Open Interest in SHIB futures

Source: Coinglass

That being said, most of the derivatives traders were bullishly positioned for SHIB, as the Longs/Shorts Ratio remained over 1 as of this writing.

Share

Aniket Verma works as a journalist at AMBCrypto. Contrary to most who are primarily interested in merely tracking price movements of cryptos, his focus is on examining the niche intersection between cryptocurrencies and traditional finance. A so-so Bitcoin maximalist, Aniket has a strong disdain for memecoins and the unfounded frenzy they seem to generate every market season. Coming from a strong engineering background, Aniket previously worked as a Content Manager for TV9 Network. Before his stint over there, he was an Associate Multimedia News Producer at Reuters.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.