Shiba Inu: Traders bet against price rise
- Shiba Inu experienced a significant decline in burn rate.
- The unresponsiveness of Shibarium’s testnet scanner raised concerns.
Shiba Inu [SHIB] had a rough time with its price performance this week, with its latest burn statistics showing the impact. The unfortunate downward trend in price persisted despite the exciting news of zero trading fees introduced by a prominent exchange.
Nevertheless, the emergence of an intriguing development related to Shibarium could also have a significant influence.
Shiba Inu sees slowdown in burn rate
A 4 June update from Shibburn revealed that Shiba Inu’s burn rate experienced a significant decline of nearly 40% over the past seven days. According to Shibburn’s post, over 4.1 billion SHIB tokens were burned during this period.
HOURLY SHIB UPDATE$SHIB Price: $0.00000866 (1hr -0.15% ▼ | 24hr 0.02% ▲ )
Market Cap: $5,104,882,563 (0.29% ▲)
Total Supply: 589,351,052,830,760
Past hour: 879,460 (1 transaction)
Past 24Hrs: 124,254,576 (1611.82% ▲)
Past 7 Days: 4,169,304,491 (-39.66% ▼)
— Shibburn (@shibburn) June 4, 2023
This decrease in burn rate, which amounted to 39.7%, indicated a slowdown in the frequency and volume of SHIB tokens being destroyed in recent days.
As of this writing, approximately 123 million SHIB tokens have been burned within 24 hours. The 24-hour burn rate also observed a decline of over 22%. While it is normal for the burn rate to decrease over time, this particular decline could be partly attributed to various reasons.
Shibarium testnet scanner experiences downtime
In a post dated 24 May by LucieSHIB, it was revealed that the anticipated launch of the Shibarium mainnet was scheduled for Q2-Q3 2023, generating considerable excitement for the memecoin.
However, there was an intriguing situation regarding the unresponsiveness of the PuppyNet scanner, which happens to be the primary scanner for the Shibarium testnet. This unexpected occurrence has piqued curiosity among observers.
While activities on Shibarium appear to be ongoing, with the addition of new blocks, the inaccessibility of the scanner has raised some concerns and questions.
SHIB sees respite
As of this writing, SHIB experienced a minor increase of less than 1% in its daily trading value. This uptick marked only the second positive movement in the past seven days, as a decline in value had characterized the overall trend.
On 1 June, Kraken announced the future listing of SHIB, introducing 0% taker and maker fees. This news resulted in a 1.65% increase in value on 2 June, which, unfortunately, quickly reverted on 3 June.
Celebrate our new perpetual futures listings!
0% maker 0.01% taker
Explore futures on Kraken Pro: https://t.co/p0GgjYjvzX
*Geo restrictions apply pic.twitter.com/gdLWHwxhDk
— Kraken Pro (@krakenpro) June 1, 2023
Before these modest gains, SHIB had been trading at a loss since 29 May. As of this writing, SHIB was following a bearish trend at press time, according to its Relative Strength Index (RSI).
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
Is SHIB going down?
According to data from CoinGlass, traders have been predominantly speculating on a price decrease for Shiba Inu. The funding rate chart analysis revealed a consistent pattern of negative funding rates since 2 June.
As of this writing, most exchanges’ funding rates remained negative. This suggested that traders were actively wagering on a continued downward trend in the price of SHIB. It also indicated a prevailing bearish sentiment in the market.