In the last 24 hours, SHIB's burning mechanism has taken a major leap, removing nearly 100 million tokens from circulation. This sudden increase in the burning process has caught the attention of investors and the crypto community, leaving many wondering what this could mean for Shiba Inu Price. Let's explore what this rapid burning could mean for the price of Shiba Inu.
How has the Shiba Inu Price moved recently?
The current price of Shiba Inu (SHIB) is $0.00001415, with a 24-hour trading volume of $192.36 million, a market cap of $8.34 billion, and a market dominance of 0.40%. In the past 24 hours, the SHIB price has dropped by 0.17%.
Shiba Inu hit its all-time high of $0.00008819 on October 28, 2021, and its all-time low of $0.0₁₀5637 on November 28, 2020. Since reaching its peak, the lowest SHIB price recorded was $0.0₅5821 (cycle low), while the highest since then was $0.00004501 (cycle high). Currently, market sentiment towards SHIB is neutral, and the Fear & Greed Index stands at 34, indicating "Fear."
SHIB has a circulating supply of 589.27 trillion out of a maximum supply of 589.74 trillion. The yearly supply inflation rate is -0.01%, which means that 74.85 billion SHIB tokens were removed from circulation in the last year.
Why is Shiba Inu (SHIB) Price Steady?
Shiba Inu's price has remained steady, largely due to a recent surge in its token-burning activity. In the past 24 hours, the burn rate shot up by nearly 140,000%, resulting in over 96 million SHIB tokens being permanently removed from circulation.
Although this large-scale burning hasn't significantly impacted SHIB's USD value yet, it suggests a trend that could decrease the token's overall supply, potentially leading to higher value if demand remains constant or grows.
What’s particularly noteworthy is that this massive burn came from a single transaction, originating from a wallet that had been inactive for more than five months. This wallet, which appears to have received funds from Coinbase on multiple occasions, suddenly came back online to burn a significant amount of SHIB.
This action might signal that some long-term holders or larger investors are beginning to actively reduce the circulating supply, possibly in anticipation of future price increases due to the reduced availability of tokens.
In the short term, this burning activity hasn't caused an immediate rise in SHIB's price, which explains the current stability. However, if these burning efforts continue and demand for SHIB stays strong or increases, the reduced supply could eventually put upward pressure on the price. This ongoing reduction in supply could become a key driver for future price movements, making it an important factor to monitor.
Will Shiba Inu Price Rise?
Shiba Inu (SHIB) has shown resilience over the past year, with its price increasing by 72%, outperforming 58% of the top 100 crypto assets during the same period. This growth, combined with a negative yearly inflation rate of -0.01%, indicates that SHIB's supply is gradually decreasing, which could contribute to upward pressure on its price over time.
The recent surge in SHIB's burning mechanism, where over 96 million tokens were destroyed, further supports this trend of reducing supply, making the token scarcer and potentially more valuable in the long term.
However, SHIB faces several challenges that could impact its potential for price growth. Despite its impressive performance over the past year, it is still trading below its 200-day simple moving average, suggesting that it has not yet regained strong upward momentum.
Additionally, SHIB has only experienced 12 green days in the last 30 days, which reflects short-term volatility and uncertainty in the market. The token is also down 84% from its all-time high, indicating that it has significant ground to cover to reach previous levels.
Given these factors, SHIB's price could rise, but the path forward is likely to be gradual and influenced by broader market conditions. The token's medium liquidity, based on its market cap, suggests that it has enough market activity to support price movements, but it may not be as quick to react to positive developments as more liquid assets like Bitcoin, which has outperformed SHIB recently.
While Shiba Inu has strong potential for future price increases due to its reduced supply and past performance, its current trading position and recent market behavior indicate that any significant price rise may take time and will depend on continued demand and broader market trends.
