The dog-themed memecoin, Shiba Inu is bleeding as prices have continued to nosedive since June 6, when it last traded above the $0.000025 mark. In an attempt to stabilize prices, the community has burned an astonishing 29,956,875 SHIB.
Shiba Inu Burn Rate Skyrockets
As per the Shiba Inu burn monitor, Shibburn, there has been a 260.73% surge in burn rate in the past 24 hours in an effort to regulate the circulating supply. The spike in burn rate is Shiba Inu’s internal regulatory move to stem the massive depreciation in the price of the memecoin.
Although analysis from crypto analytics platform Cryptorank had anticipated the price drop, market watchers had anticipated Shiba Inu would take a proactive move to mitigate the bearish sentiments. Notably, Cryptorank identified a recurring bearish pattern for Shiba Inu since 2021 and this year seems to be no different.
In May, following the memecoin’s performance, investors were optimistic that SHIB could break above the $0.00005 price level. However, market realities have signaled the opposite.
Currently, the market price of Shiba Inu is $0.00001787, marking a 1.53% dip. Despite investor hopes, the token has struggled to gain upward momentum, leading to increased reliance on burn rates to manage its value.
Prospects of SHIB Amidst Burn Strategy
The Shiba Inu ecosystem relies on the burn rate to regulate significant price drops. In mid-May, following a 127% burn rate, SHIB registered an appreciable recovery in key indicators such as price and trading volume. The mild upticks in metrics followed the transfer of tokens to dead wallets.
The incineration of over 29,000,000 tokens brings the total burnt from initial supply to a staggering 410,727,009,686,345 SHIB. Meanwhile, circulating supply stands at 583,313,237,553,741 while tokens locked in staking contracts amount to 5,959,752,759,912 SHIB.
Despite the price value being at a low, the burn rate serves to reboot the token’s ecosystem. How effective this will be in the month of June which has been tagged a “bearish month” for SHIB remains unknown.
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