Shiba Inu, one of the most popular meme coins, has recently burned 57.2 million tokens, according to data from Shibburn.com. But will this impact the $SHIB price?
The Impact of the Burn
While the data from Shibburn represents progress in Shiba Inu’s deflationary process, the total value of the burned tokens is just about $1,258 at current prices. Given Shiba Inu’s market cap of approximately $12.9 billion, the immediate effect on the price is minimal. Token burning aims to reduce the total supply of a cryptocurrency, increasing its scarcity and value, but this small-scale burn will not drastically impact Shiba Inu's price in the short term.
The Power of the Shiba Inu Community and Ecosystem
Shiba Inu has grown into a speculative asset, fueled by its vast and active community. This community involvement has been crucial in helping the token survive in the volatile world of meme currencies.
Recently, SHIB has been trading just above $0.000028, showing stability and holding steady near the 21-day moving average (DMA). Positive sentiment remains strong, supported by a rebound from the 50DMA in December, suggesting potential bullish momentum.
Factors Driving Optimism
Much of this optimism is tied to broader developments in the U.S., where the incoming Trump administration and Congress are expected to support cryptocurrency, potentially offering regulatory clarity that could benefit the entire crypto market, including meme coins like Shiba Inu.
Technical and Sentiment Analysis
Moving average data from TradingView shows SHIB as a strong "buy" on the one-month timeframe. Furthermore, sentiment analysis from CoinMarketCap reveals that 89% of users are bullish on SHIB, driven by ongoing burns and the promise of new projects in 2025.
For instance, Shiba Inu’s lead developer, Shytoshi Kusama, has confirmed upcoming initiatives like the TREAT token and “SHIB: The Metaverse,” which are expected to boost SHIB’s market presence and community engagement.