The burn rate for Shiba Inus (SHIB) has increased by about 400%. Investors and analysts have taken notice of the phenomena where millions of SHIB tokens are being destroyed. The price of a Shiba Inu is currently about $0.00000731 according to the most recent data, but the underlying activity is more interesting.
What’s driving burn rate?
The burn rate for Shiba Inus (SHIB) has increased by about 400%. Investors and analysts have taken notice of the phenomena where millions of SHIB tokens are being destroyed. The price of a Shiba Inu is currently about $0.00000731 according to the most recent data, but the underlying activity is more interesting.
Does it affect price?
It’s interesting to note that the price of Shiba Inu has mostly been steady despite this drastic rise in burn rate. The lack of volatility may surprise individuals who believe that token burning automatically result in price hikes. Burning tokens lowers the total supply, but this does not always indicate that the value of the tokens that remain increases. Supply is merely one of several variables that have an impact on market dynamics.
A greater burn rate along with steady pricing may be viewed by investors as an indication of a healthy network and active users. It is crucial to remember, nevertheless, that the burn rate should not be the only factor considered when choosing an investing strategy.
Burn rate is a fascinating number, but it’s important to consider the whole picture, which includes other indications like trade volume, liquidity, and market mood. Shiba Inu’s constant pricing despite its high burn rate may be a sign of a mature market reaction in which the consequences of token burning have already been factored in.
