Shiba Inu (SHIB) has been underperforming recently, with its price falling by more than 10% on a weekly basis, according to data from Coingecko. This is despite notable developments in the Shiba Inu ecosystem and broader crypto market events.
The burning rate of Shiba Inu
Recently, Shiba Inu’s burn rate has continued to rise, coinciding with the launch of the Ethereum ETF. In fact, the burn rate metric has surged 482.88% in the past 24 hours, showing a renewed interest in the memecoin. It is unclear whether this burn rate is a continuation of activity from earlier this week.
According to Shibburn data, 60,380,203 SHIB tokens were recently destroyed, which reduced the total amount of tokens being sent to dead wallets.
However, the destruction rate shows some fluctuations, with 135,026,217 SHIB tokens destroyed in the past seven days. Shibburn noted that five different wallet addresses stood out in the latest round of destruction, each of which sent at least 9,999,999 SHIB to the dead wallets.
As of now, the Shiba Inu ecosystem has destroyed a total of 410,727,706,468,542 SHIBs, and the remaining 583,377,438,955,666 SHIBs are still in circulation.
Where is the price of memecoin headed?
Contrary to previous expectations, the price of the Shiba Inu has not reflected the expected benefits of the increased burn rate.
As of now, SHIB is trading at $0.00001737, down more than 2.45% over the past 24 hours. Its price action appears to be continuing its recent volatility, as it, like other memecoins, has also lost 10% of its value over the past seven days.
Over the past month, SHIB has shown great price volatility, with its price dropping to as low as $0.000012 before recovering to over $0.000020 and finally stabilizing at around $0.000017. This price volatility highlights the unpredictability of the market.
Judging from historical data, Shiba Inu reduces the total supply through the burn rate, which theoretically creates scarcity and potentially increases the price.
However, to date, although a large number of SHIB tokens have been destroyed and the remaining supply is relatively large, this economic principle has not yet been reflected in the market performance of SHIB. Its exact impact on prices still needs further observation.
Ethereum ETF Launches, SHIB Whale Activity Surges
The Ethereum ETF, which is expected to be officially launched today, could have an impact on the broader cryptocurrency market, including Shiba Inu. Market analysts are closely watching the development to see if it helps SHIB recover from recent price losses.
This ETF could bring renewed interest and positive sentiment to the market, which could help SHIB’s performance.
Net inflows from large holders of Shiba Inu, an indicator tracking cryptocurrency whale activity, have been increasing significantly, according to data from IntoTheBlock.
Over the past seven days, net flows of major shareholders have increased, specifically, negative flows have increased - a sign of heavy selling. If you are still on the sidelines and cannot see the market trend clearly, you will only fall because of bullishness and rise because of bearishness. Free ➕👗 ➕🌍 BNB0098
Typically, a decline in large holder net flows could mean that major holders are reducing their positions. This could be the reason for the recent price drop in the SHIB market.
