Shiba Inu’s massive 1.6B April burns fail to fire up a price rally – Why?

• The total Shiba Inu that burned in April was over 1.6 billion.
• SHIB maintained the second-largest market cap.

The volume of Shiba Inu [SHIB] burned in April amounted to billions. Yet, this substantial burn did not translate into a noticeable impact on the price. Additionally, a significant decline was observed in the number of active addresses associated with Shiba Inu during the same period.

Billions of Shiba Inu taken out of circulation

Recent data from Shibburn indicated that in April, over 1.6 billion Shiba Inu tokens were burned across 204 transactions. Further analysis revealed that a substantial number of SHIB tokens, over 410 trillion, are currently held in null addresses.

In contrast, approximately 582 trillion tokens remain in circulation. 

At the time of this writing, the total number of tokens burned was 2.3 million. Despite this significant burn rate, it appears that the reduction in the volume of SHIB tokens in circulation has not notably impacted the overall volume remaining in circulation.

SHIB price trend falls in April

AMBCrypto’s analysis of the daily timeframe chart revealed a decline in the price of Shiba Inu during April compared to the previous month. The analysis indicated that SHIB began trading in April at around $0.000028, experiencing an initial decline of over 6.8%.

Throughout the month, the price continued to trend downwards, resulting in the short-moving average (yellow line) transitioning from a support to a resistance level. 

Source: TradingView

This shift indicated a poor performance for SHIB as it traded below the yellow line. By the end of April, the price had dropped to approximately $0.0000022, reflecting a decline of over 7%.

At the time of this writing, SHIB was trading at around $0.0000021, with a further decline of over 5%. 

Furthermore, analysis using the price range tool showed that SHIB had lost over 26% of its value from the beginning of April to the present.

Despite significant token burns during the month, the price trend suggests that these burns did not have a substantial impact on SHIB’s value.

Active addresses see a significant decline

The number of 30-day active addresses saw a notable increase throughout March, with an average of around 280,000 observed. However, analysis of the chart revealed a significant decline in April, with the number dropping to approximately 125,000 by the end of the month. 

Source: Santiment

As of the latest data, the number of Shiba Inu active addresses was around 124,000. Similarly, an examination of daily active addresses also indicated a decline, with approximately 4,800 active addresses recorded at the time of this writing.

Read Shiba Inu (SHIB) Price Prediction 2024-25

Despite its lackluster price performance, Shiba Inu has managed to maintain its position as the second-largest memecoin.

According to data from CoinMarketCap, the SHIB market capitalization was over $12.4 billion at the time of this writing. A glance at the rankings revealed that its market cap surpassed that of the next seven memecoins combined.