Shiba Inu (SHIB) price dropped by 4% daily amid a market slump as monthly burn rate score also dropped by 58.5%.
The Shiba Inu team burned millions of tokens last month. The mechanism aims to reduce supply and potentially boost prices if demand stays strong.
SHIB’s price dropped by 4% daily amid a market slump. However, improvements in the Shibarium network could lead to a future rally.
The Burning Last Month
The team behind the popular meme coin Shiba Inu continues to send tokens to a null address as part of its burning program. Data shows the destroyed tokens reached almost 380 million last month after 178 total transactions.
379,473,801 $SHIB tokens have been burned in the month of July with 178 transactions. #SHIB pic.twitter.com/7E7gPbbk4U
— Shibburn (@shibburn) August 1, 2024
The record day was July 11 when over 70 million SHIB got burned, followed by July 22 (approximately 60 million SHIB).
The monthly burn rate score might sound impressive but its USD equivalent is actually insignificant. July’s stats also represent a 58.5% decrease compared to the overall figure observed in June.
Still, continuous efforts in the field can positively impact the price of the meme coin due to the reduced circulating supply. In this case, though, a potential SHIB rally will depend on the level of demand, which needs to stay the same or go up (as fundamental principles of economics dictate).
SHIB Price Outlook
The price of the second-largest meme coin has seen better days, dropping by 4% on a 24-hour scale and currently trading at around $0.00001583.
SHIB Price Chart | Source: CoinStats
Its poor performance coincides with an overall market slump where Bitcoin (BTC) briefly plunged below $64,000, while Ethereum (ETH) tumbled to as low as $3,100.
However, some important metrics related to Shiba Inu’s ecosystem hint that a resurgence could be in the cards.
The Relative Strength Index (RSI), which measures the speed and change of price movements and identifies whether the asset is overbought or oversold, has been experiencing a downfall lately.
The ratio varies from 0 to 100, as a score above 70 signals that a correction could be imminent. Currently, the RSI is set at around 30.
The possible advancement of the layer-2 blockchain solution Shibarium could also fuel a SHIB bull run.
The network saw the light of day approximately one year ago and is designed to foster the development of the Shiba Inu ecosystem by lowering transaction costs, enhancing scalability, and improving speed.
Earlier this week, the protocol blasted through another major milestone, with the number of processed blocks surpassing 6 million. For more updates on the ecosystem, make sure to check out our Shibarium news.
