Two-thirds, that’s how much of Shiba Inu’s value disappeared so far in 2022. Even the biggest fans of the meme coin don’t make much of it these days.

However, there is at least one reason for hope. Notably, more Shiba Inu holders are burning their tokens. But the question is, can Shiba Inu even burn its way to $0.001?

puppy on fire

At the time of writing, SHIB struggled to regain its lost holdings as it underwent another 4% correction on CoinMarketCap. At the time of writing, it was trading at $0.0000109.

The price didn’t look much commendable, but SHIB’s community left no stone unturned in burning SHIB’s stockpile.

Shiba Inu’s burn rate reached triple digits and stood at 1.031% at one point, as indicated in the tweet below.

At the time of writing, according to the official SHIBburn website, the burn rate was somewhere near 800%. Despite the drop, such an unprecedented burn rate still made headlines in the crypto community.

Source: Shibburn

Notably, burning reduces the stock of Shiba Inu tokens in circulation. Assuming that the demand for the cryptocurrency does not fall, continuing to burn would sooner or later push up the price of SHIB. But you may wonder, how much combustion would it cost?

Well, there is still a lot to burn before SHIB can reach its burning embodiment. The number of SHIBs burned has resulted in a fairly small sum of 129.4 million SHIB, which is equivalent to $1,430.

However, in the past week, 318.7 million SHIB, equivalent to $3,511, were sent to “dead addresses.”

In fact, just two weeks ago, SHIB witnessed its famous token burning campaign hit a new burn rate that was high in the 48 hour timeline. The token burned nearly 200 million coins, after which the burn rate increased by almost 3,000%.

Why?

You may be wondering, why isn’t the price going up? Well, due to the increase in burn rate, still no more than 10.4 billion SHIB, equivalent to $115,000, could be burned in these three months.

In addition, net deposits in exchanges were high compared to the seven-day average according to data from CryptoQuant.

Source: CryptoQuant

This can be interpreted as a higher selling pressure in the market. One of the main reasons why the price continued to fall.





This post Shiba Inu’s burn rate is >1000% but SHIB is less than $0.001- Here’s why:

was published first on https://ambcrypto.com/shiba-inus-burn-rate-is-1000-but-shib-is-under-0-001-heres-why/

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