Shiba Inu (SHIB) has become a topic of debate as its current market capitalization stands at $13.87 billion, and its burn rate has surged by 6,220% in recent days. With over 410 trillion tokens burned from an initial supply of 999 trillion, discussions are ongoing about whether reducing 99% of SHIB's circulating supply could push its price to $1.
The lead developer of Shiba Inu, Shytoshi Kusama, responded to questions regarding the feasibility of burning 99% of SHIB tokens. He stated that while such a move is feasible, it may not be sufficient to push the token price to $1. According to him, simply burning tokens cannot sustain price increases without broader acceptance and ecosystem development.
Kusama emphasized the importance of ongoing decentralized finance (DeFi) projects within the Shiba Inu network, stating they are the primary drivers of long-term value. He also mentioned that aggressive token burning poses risks. If SHIB's price rises, this could deter new investors and slow adoption, potentially hindering further growth.
Market performance: SHIB's price and volume trends
The price of SHIB has decreased by 10.08%, trading at $0.00002354. The market capitalization of this cryptocurrency has dropped to $13.87 billion, with trading volume down 14.75% to $1.46 billion.
Technical analysis drives cautious outlook. The MACD has entered a bearish crossover, signaling a decrease in upward momentum, while the RSI stands at 53.26, approaching overbought conditions from previous sessions.
According to Coinglass data, SHIB's liquidation models show a correlation between price volatility and trader activity. Notable liquidations occurred during the rapid price declines in late September and early November, with long liquidations outpacing short sales.
This trend indicates a bullish stance from traders and highlights the risks of trading in SHIB's volatile market.
Key points to note for investors
Shiba Inu's increased burn rate aims to reduce its massive token supply and raise its price. However, this may not be enough for sustainable growth. The SHIB community needs to focus on building utility and enhancing adoption through new projects and developments.
