Millions of burned Shiba Inu tokens are no big deal for token’s value
A significant amount of Shiba Inu tokens have been burned over the past 24 hours, marking one of the most productive days for the token burner in a relatively long time. However, even a million burnt tokens may not be enough to provide a significant impact on the Shiba Inu’s market value.
With almost 30 million Shiba Inu burned in the last 24 hours, the market will no longer see only a few hundred worth of meme tokens, which is obviously never going to have an effect on an asset with a $4.5 billion market capitalization.
Recently, U.Today covered how the burning supply of Shiba Inu increased by 640% and millions of SHIBs were destroyed that day. However, even if we add up all the burning volume during the past week, we would barely be able to burn $10,000 worth of Shiba Inu tokens, which is the exact reason behind the absence of any sort of impact on the token price.
In order to make Shiba Inu move, the daily burning value of SHIB tokens should at least reach a few billion. With only a few million of Shiba Inu burned, the token’s placement on the market will not change, even during better market conditions.
Taking a quick look at the Shiba Inu’s current position in the market, it becomes clear that the token is oversold and could rally to the upside with the help of any headwinds. Unfortunately, meme currencies such as Shiba Inu and Dogecoin have underperformed due to the current market conditions and the lack of investors willing to take risk.
