Shiba Inu market cap decline is more dramatic than its price drop, but it is not really bad signal
According to the latest data from TradingView, the capitalization of Shiba Inu to date is down more than 5.5%, while the price of the SHIB coin itself suffers a drop of three times less, to around 1.8. %. So, at the time of writing, the capitalization of the project is $6.01 billion and the price of SHIB is $0.000011 per coin.
Nevertheless, such a large gap in the decline should not upset the fans and holders of the much-loved memecoin, which in the opinion of many in the #ShibArmy should not be considered a memecoin anymore. This is especially true against the background of the large-scale use of the coin as a means of payment and its integration into the ranks of payment systems.
So why is this good news?
Market capitalization, to put it simply, is a product of the number of coins in circulation and the price of each one. With a specific number of coins, one would expect the capitalization and price of a coin to move in the same way.
However, Shiba Inu is not such a simple project, as the number of SHIB coins according to the consensus established by the community and project developers is constantly being burned.
In recent days, the Shiba burn rate has often shown encouraging values, and on June 2, it even showed an incredible peak of 190%. It can be safely assumed that due to increased burning, the number of SHIB coins in circulation is constantly decreasing, but as the market environment drives down the price of the coin, the capitalization of Shiba Inu decreases more hard.
In good news, with the same degree of certainty it can be assumed that when bullish sentiment prevails on the market again—and if, of course, the project survives a possible crypto winter—SHIB will be able to show market-outperforming growth, while the “diamond hands” fans will be generously rewarded for their loyalty.
