While Shiba Inu’s burn rate has significantly surged, the coin’s price remains a topic of intrigue as it struggles to mirror the same enthusiasm.
Recently, SHIB’s price trajectory has been somewhat perplexing. While the cryptocurrency market thrives and many altcoins mark consistent gains, Shiba Inu is still caught in a downtrend, seemingly trapped within its current volume profile. Occasional attempts at a breakthrough have been noticeable, yet they end in short-lived rallies, leaving investors and traders pondering the reasons behind its stunted growth.
The current downtrend may puzzle many, especially considering the coin’s vibrant community and its popularity on social media. Yet, despite the buzz, its price has failed to sustain any substantial upward momentum. Several factors can be attributed to this:
Over-hype: Like several meme coins, Shiba Inu might have initially grown on a wave of hype. Once the initial enthusiasm wanes, sustaining the same growth trajectory can be challenging.
Market saturation: With a plethora of new coins entering the market daily, competition is rife. Investors have a vast range of options to choose from, diluting the concentration from previously popular coins like SHIB.
Speculative nature: Being a meme coin, many investors approached SHIB from a speculative standpoint, seeking quick profits rather than long-term investments, which is not the go-to investment strategy during the rise of Bitcoin’s dominance and other more fundamentally sound assets.
Recent data indicates a 65.22% surge in the SHIB burn rate, with a staggering 29,736,161 SHIB being burned in the last 24 hours. Coin burning, a deliberate process where tokens are permanently removed from circulation, often leads to scarcity, theoretically boosting the price.