Meme token rising, burning rate does not really help
The Shiba Inu’s burning mechanism is one of the main growth fuels for tokens on the cryptocurrency market. Whenever major irritation occurs, SHIB almost always reacts accordingly. Over the past few weeks, Meme Token has faced several hurdles in the market, but a more active burn will help it sail through them.
As the Shibburn service suggests, the burn rate of the biggest meme token on the market spiked by 120% in the last 24 hours, bringing at least some hope to SHIB investors, who have been facing losses on the market since the end of October.
Such poor price performance is a result of massive outflow of funds from the cryptocurrency market due to the tightening of monetary policy in the US and, therefore, reducing risk appetite from investors.
Meme tokens and coins like Shiba Inu and Dogecoin usually become the biggest victims during fundamental changes in traditional markets. Unfortunately, the only effective way to bring institutional investors back to the market is to shift the sentiment in the industry, attracting more retail traders and investors, who are the target audience of assets like SHIB and DOGE.
The conformation of Shiba Inu holders in 2021 bore almost no resemblance to what we see today. Most of the token holders were small retail investors who managed to get their hands on most of the SHIB supply, making the token a short-term holding in most wallets on the network.
With the downtrend came the redistribution of funds, which led to the creation of a new majority on the network: whales, long-term holders and institutional investors, who will most likely become the foundation for the asset’s growth in the future.
