Shibburn platform, which gathers information about transactions that burn Shiba Inu and posts it on its website, has responded in a tweet to a concern recently raised by a large portion of the SHIB community: why is the price of SHIB not increasing despite significant and frequent token burns?
“It’s burning, but price not moving!”
Shibburn The pricing and “some misconceptions” about SHIB burns have been addressed by a Twitter account. They emphasised that this is applicable to other cryptocurrencies in addition to Shiba Inu.
The tracker stated that without being accompanied by sizable token purchases, burns alone—no matter how large—can rarely have a significant influence on the price. Shibburn said that even if SHIB aficionados were able to sell 10 billion SHIB each week, the price would not change significantly as long as even more SHIB was being bought every day to maintain pricing.
In addition to the other factors Shibburn noted, there are other factors that affect token pricing. According to the tweet, burns can erase up to 90% of a token’s supply; however, if the token lacks any genuine user demand, it is worthless. Shibburn reminded its listeners that the primary drivers of price increases are always supply and demand.
Top 100 accounts hold 400 trillion SHIB
Shibburn said that the top 400 wallets, the most of which are centralised cryptocurrency trading sites, presently hold roughly 400 trillion Shiba Inu coins out of the total circulating quantity. There are 1,323,659 addresses that are SHIB-holding in total. The tweet claims that if users and CEXes start to amass more Shiba Inu, particularly if there is a bull market, the price of the meme currency might still increase based on the demand component.
Furthermore, just because SHIB (or any other token) reaches a certain price, say $0.01 (which, of course, every SHIB holder would love to see), does not automatically indicate it is a success. As the price rose to their desired level, several people already sold SHIB and made a profit.
The Shibburn account advises waiting to watch how things develop rather than concentrating on the price as more people use SHIB and as new projects are developed on Shibarium, with the crypto sector expanding generally.
Sunday SHIB burn news
Shibburn has recorded a total of 29,891,399 SHIB moved to dead-end wallets in 11 transactions during the last 24 hours, to be more precise. While other lesser ones moved between three million and five million SHIB, the largest one moved 8,857,157 SHIB.
Shiba Inu’s burn rate decreased by 51.48% as a result when compared to what was seen on Sunday.
