The burn rate of Shiba Inu has increased amid sustained pressure in trading for over a month. As such, market participants now wonder if the price will recover once the demand-supply dynamics change after the cryptocurrency burn.
Shiba Inu sees higher burn rate
Shiba Inu (SHIB) has been in the news due to a notable rise in burn rate. On Wednesday, July 3, the Shiba Inu (SHIB) coin burn rate increased by around thirty thousand percent. Despite this, the price kept trading in red, showing discrepancies with the news.
According to CoinMarketCap data, SHIB was trading at $0.00001633 at press time, down 5.07%.
The SHIB community is eager and keeps interacting with the token’s ecosystem despite the volatility. Shiba Inu’s higher burn rate indicates a rising trend in which supply is being reduced with the possibility of increasing value. Burn rates can greatly impact a token’s market dynamics, which is why investors are closely following these changes.
The term “crypto burn” describes a deflationary procedure in which cryptocurrency tokens are taken out of circulation forever. This is an attempt to raise demand and market value by reducing the overall supply of a digital asset.
Why is SHIB falling?
Known as the “Dogecoin killer,” Shiba Inu (SHIB) has encountered several difficulties, such as regulatory uncertainty, market instability, and rivalry with other meme coins since the beginning of 2024. SHIB’s enthusiastic community and meme-inspired branding helped it become well-known at first.
Still, in the face of growing doubt and uncertainty, the platform has been unable to maintain its momentum. As a result, SHIB’s price has been battling to reclaim lost ground throughout a protracted slump.
As per the current technical indicators, the Fear & Greed Index for SHIB is reading 50 (Neutral), indicating a bearish market. Over the previous 30 days, Shiba Inu had 12/30 (40%) green days and 14.62% price volatility.
Data and analyst comments show an overall bearish feeling for Shiba Inu price prediction, with 6 technical analysis indicators indicating bullish signs and 24 indicating bearish indications.
