Tl;Dr
- Shiba Inu’s price dropped after a brief surge, with some metrics indicating further bearish trends.
- The token’s burn rate has sharply decreased, while over half of its investors are currently sitting on paper losses.
The Overall Bearish Conditions
The price of Shiba Inu (SHIB) witnessed a minor uptick last week, surging to as high as $0.00001407 on September 14. However, the rally was short-lived, and the valuation tumbled in the past 24 hours to the current $0.0000133.
According to IntoTheBlock, Net Network Growth, a momentum signal that gives “a pulse of the true growth of the token’s underlying network,” has fallen by 0.19% daily. Large transaction volume, the aggregated daily volume where each on-chain transaction exceeds $100,000, has reached $5.3 million, representing a 76% crash on a daily scale.
The Shiba Inu Burning Mechanism
Over the past 24 hours, the burn rate has collapsed by 96%, resulting in only 227,000 tokens sent to a null address. The program’s ultimate goal is to reduce the huge circulating supply of SHIB, making it scarcer and potentially more valuable in the future (assuming demand doesn’t head south). More than 410 trillion tokens have been destroyed since the launch of the effort, leaving approximately 583 trillion in circulation.
The team behind Shibarium (Shiba Inu’s layer-2 scaling solution) has also adopted a burning mechanism called a “Burn Portal.” It differs from the original program since it relies on BONE – the governance token of the ecosystem. The coin is used to pay for gas fees. A portion of the costs, paid in BONE, is used to purchase SHIB tokens, which are subsequently sent to a null address. Users are able to initiate a burn only if they have more than 100 BONE.
SHIB Trails Behind DOGE and PEPE on This Front
Unsurprisingly, Shiba Inu’s poor performance has negatively affected investors in the asset. IntoTheBlock data shows that 45% of the HODLers are sitting on paper profits, whereas 52% are underwater. The situation was much different in March this year when SHIB experienced a bull run. Back then, 63% of all SHIB investors were in the green.
On the contrary, the vast majority (72%) of Dogecoin (DOGE) holders are currently sitting on profit of their initial investments, while only 25% are in red territory. Pepe (PEPE) investors are also in a better position than SHIB ones, with 49% “in the money” and 40% witnessing some losses as of now.
Conclusion
In conclusion, Shiba Inu’s recent price drop and decline in on-chain metrics signal a bearish trend, with the token’s burn rate sharply decreasing and a significant portion of investors holding paper losses. While the Shiba Inu burning mechanism aims to reduce the circulating supply and make the token more valuable, its poor performance trails behind that of DOGE and PEPE.
Q: What is the current price of Shiba Inu (SHIB)?
A: The current price of SHIB is $0.0000133.
Q: What is the reason behind Shiba Inu’s recent price drop?
A: Shiba Inu’s recent price drop is attributed to declining on-chain metrics, including a decrease in Net Network Growth and large transaction volume.
Q: What is the Shiba Inu burning mechanism?
A: The Shiba Inu burning mechanism is a program aimed at reducing the circulating supply of SHIB, making it scarcer and potentially more valuable in the future.
Q: Why is the burn rate of Shiba Inu declining?
A: The burn rate of Shiba Inu is declining due to a decrease in the number of tokens being sent to a null address.
Q: How does the burn mechanism of Shibarium differ from the original program?
A: The burn mechanism of Shibarium relies on BONE, the governance token of the ecosystem, whereas the original program relies on SHIB tokens.
Related Stories
Brutal 60% Crash Comes Next?
Rewrite the Check out why PEPE's bulls may take another major blow soon. PEPE – the frog-themed meme coin, which...
Pi Network’s (PI) Price Jumps 6% on Buzz of a Big Upcoming Upgrade: Details Here
Rewrite the "A robust enhancement seems to be looming for the Pi ecosystem," one X account claimed. The native token...
Pump.fun Co-Founder Denies Cashing Out ICO Funds, Calls Allegations ‘Misinformation’
Rewrite the Lookonchain flagged the movement of $436.5 million USDC through Kraken, but Pump.fun's co-founder said it's a simple treasury...
Crypto Market Cap Flirts With $3T Mark as Bitcoin Was Stopped at $88K: Market Watch
Rewrite the M is today's top gainer, while ZEC has lost some of its momentum. Bitcoin’s price recovery that started...
