Shiba Inu’s burn rate is >1000% but SHIB is under $0.001- Here’s why
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Two-thirds, that’s how much of Shiba Inu’s value was lost so far in 2022. Even the biggest fans of the meme coin don’t admire it much these days.
However, there is at least one reason for hope. In particular, more Shiba Inu holders burn their tokens. But the question is: Can Shiba Inu even burn his way to $0.001?
A puppy on fire
At the time of writing, SHIB was struggling to regain lost control as it suffered another 4% correction in CoinMarketCap. At the time of writing, it was trading at $0.0000109.
The price didn’t seem very commendable, but the SHIB community left no stone unturned when smoking SHIB’s offerings.
The Shiba Inu’s burn rate reached triple digits at one point at 1,031%, as highlighted in the tweet below.
JUST IN: Rate of fire for the target $SHIB has risen 1031% today🔥
— Shiba Archives (@ShibaArchives) 25 September 2022
At the time of writing, according to SHIBburn’s official website, the burn rate was close to the 800% mark. Despite the decline, such an unprecedented burn rate still made headlines in the crypto community.
Smoking especially reduces the number of Shiba Inu brands in circulation. Assuming that the demand for the cryptocurrency does not decrease, the continuous burning would sooner or later increase the price of SHIB. But you might ask, how much burning would it take?
Well, there’s still a lot to burn before SHIB can reach its fiery incarnation. The number of people burned with SHIBs has resulted in a rather small amount of 129.4 million SHIBs, equivalent to $1,430.
However, over the past week, 318.7 million SHIBs, equivalent to $3,511, were sent to “dead addresses”.
In fact, just two weeks ago, SHIB witnessed its famous token burning campaign hit a new burn rate on a 48-hour timeline. The token burned almost 200 million coins, after which the burning rate increased by almost 3000%.
You might ask, why isn’t the price going up? Well, the burn rate increase still didn’t allow more than 10.4 billion SHIB, equivalent to $115,000, to be burned in those three months.
In addition to this, net deposits on the exchange were high compared to the seven-day average, according to data from CryptoQuant.
This can be interpreted as higher selling pressure in the market. One of the main reasons why the price kept falling.