Shiba Inu’s burning rate recovers successfully, but will that help price of SHIB?
The past few months have not been the best of times for the Shiba Inu as the token has been falling sharply in value over the last five months. A major part of the problem was linked to the decline in burn volumes which is fueling SHIB’s recovery in the market. Fortunately, the situation is finally changing.
According to Shibburn, the burn rate on the network has spiked massively. The most recent data shows that SHIB saw a massive 910% burn spike in the last 24 hours, making it one of the biggest burn increases in the last few weeks.
The main burning address ending with 3963d removed over 5 million tokens from circulation on the network, making it the largest contributor to the amount of Shiba Inu burned in the last 24 hours.
How does price react?
Unfortunately, the massive percentage spike in burning volume did not cause a corresponding effect on the market. Shiba Inu continuously moves below the local resistance level reflected on the 21-day moving average.
The gloomy price performance is the result of massive money outflows from the cryptocurrency market and total abandonment of retail portfolios across the entire digital asset industry. Traders and investors have increasingly been selling their holdings since the beginning of the year, and high-risk assets like the Shiba Inu were among the first digital investment instruments to leave their wallets.
At press time, Shiba Inu is trading at $0.000009, below the important psychological threshold of $0.00001. Unfortunately, the amount of burned SHIB tokens we have now is not enough to cover the existing surplus of supply, which has continuously pushed the price of the meme token down.