The Shiba Inu burn rate is successfully restored, but will this help the price of the SHIB?
The past few months have not been the best of times for Shiba Inu, as the value of the token has dropped rapidly over the past five months. Much of the problem has to do with a decline in combustion volume that fueled SHIB’s upswing in the market. Fortunately, the situation is finally changing.
According to Shibburn, the burn rate on the network has seen a massive increase. The latest data shows that SHIB has experienced a massive burn increase of 910% in the past 24 hours, making it one of the biggest burn increases in recent weeks.
The primary burning address that ended in 3963d removed over 5 million tokens from network circulation, making it the largest contributor to the amount of Shiba Inu burned in the last 24 hours.
How does the price react?
Unfortunately, the massive percentage increase in combustion volume did not cause a corresponding effect on the market. The Shiba Inu is constantly moving below the local resistance level as reflected by the 21-day moving average.
The low price performance is the result of the massive outflow of funds from the cryptocurrency market and the total abandonment of retail wallets across the entire digital asset industry. Traders and investors have been rapidly selling their holdings since the beginning of this year, and high-risk assets like Shiba Inu were among the first digital investment tools to disappear from their wallets.
Currently, Shiba Inu is trading at $0.000009, below the important psychological level of $0.00001. Unfortunately, the amount of burned SHIB tokens we currently have is not enough to cover the existing excess supply, which has continuously pushed the price of the meme token down.