While the burn rate of Shiba Inu has dramatically increased, the coin’s price continues to be a mystery as it struggles to reflect the same excitement.
The price trend of SHIB has been fairly baffling lately. Shiba Inu is still in a decline and appears to be imprisoned inside its current volume profile, despite the fact that the cryptocurrency market is booming and numerous altcoins are seeing steady increases. There have been noteworthy efforts at breakthroughs from time to time, but they have only resulted in brief rallies, leaving traders and investors wondering why the market has grown so slowly.
Many people might be perplexed by the current downward trend, especially in light of the coin’s active community and widespread use of social media. The price hasn’t been able to maintain any significant upward momentum despite the excitement. There are a number of causes for this, including:
Overhype: Shiba Inu may have expanded at first on a wave of hype, similar to numerous meme currencies. It might be difficult to maintain the same development trajectory when the early enthusiasm fades.
Market saturation: There are a tonne of new coins coming into the market every day, therefore competition is fierce. With so many alternatives available to investors, the concentration of formerly well-known currencies like SHIB is diluted.
Speculative nature: Since SHIB is a meme currency, many investors approached it speculatively, seeking short-term gains rather than long-term investments. This was not the preferred method to investing during the ascendance of Bitcoin’s domination and other more fundamentally solid assets.
A startling 29,736,161 SHIB have been burnt in the previous 24 hours, according to recent data, which shows a 65.22% increase in the SHIB burn rate. The purposeful removal of tokens from circulation by coin burning frequently creates scarcity, which should increase the price.
