Shiba Inu: Burn rate is over 1000% but why SHIB is less than 0.001$?
Two-thirds, that's how much worth of Shiba Inu has disappeared so far in 2022. Even the biggest fans of the meme coin aren't too excited about it these days.
However, there is at least one reason to be hopeful. In particular, many Shiba Inu holders are burning their tokens. But the question is: Can the Shiba Inu burn their way to $0.001?
SHIB - Puppy on fire
At press time, SHIB was struggling to regain lost ownership as it was subject to an additional 4% correction on CoinMarketCap. At the time of writing, it is trading at the $0.0000109 mark.
This price may not seem too commendable, but the SHIB community is not surprised to burn through the supply of SHIB.
Shiba Inu's burn rate hit triple digits and stood at 1.031% at one point, as highlighted in the tweet below.
At the time of writing, according to the official SHIBburn website, the burn rate is close to 800%. Despite the drop, the unprecedented burn rate still caught the attention of the crypto community.
In particular, the burning reduces the supply of Shiba Inu tokens in circulation. Assuming that the demand for the cryptocurrency does not decrease, the continued burning will sooner or later push the SHIB price up. But you may be asking yourself, how much will you need to burn?
Well, there's still a long way to go before SHIB can achieve its fiery epitome. The number of SHIBs burned resulted in a rather small number of SHIB 129.4 million, or $1,430.
However, in the past week, 318.7 million SHIB, or 3,511 USD, have been sent to the “dead address”.
In fact, just two weeks ago, SHIB saw its famous token burn campaign hit a new write rate in a 48-hour timeline. The token burned nearly 200 million coins, after which the burn rate skyrocketed nearly 3,000%.
Then why does SHIB not gains?
You may be wondering, why hasn't the price gone up? Well, the increase in the burn rate still doesn't allow burning more than 10.4 billion SHIB, or $115,000, in these three months.
Additionally, net deposits on exchanges remain well above the seven-day average according to CryptoQuant data.
This can be interpreted as increasing selling pressure in the market. One of the main reasons why prices continue to go down.
Sep 26, 2022