The cryptosphere is going through a period of uncertainty marked by continued volatility in the markets. Among the most watched assets, Shiba Inu (SHIB) in particular attracts attention. Often compared to dogecoin, this memecoin is at the heart of an intense mobilization of its community, which recently burned more than 66 million tokens to reduce the circulating supply. Despite these efforts, SHIB’s price has plummeted, which speaks to the limits of token destruction mechanisms in the face of market forces. This situation calls into question the effectiveness of these strategies in a complex economic context.
Millions of SHIBs destroyed, but limited impact
Over the past week, the Shiba Inu community has stepped up its efforts to reduce the stock turnover of its property. According to data published by the Shibburn tracker, 66,156,811 SHIB have been permanently removed from the market by sending to inaccessible wallets. The move aims to limit the asset’s glut, a strategy that could theoretically boost its value and reduce selling pressure.
However, the results obtained are mixed. Compared to the previous week, the rate of token destruction decreased by 24.11%, which could reflect a decrease in participation or lower effectiveness of these initiatives. This slowdown is even more visible in the last 24 hours, when only 2.85 million SHIBs were destroyed, a drastic drop of 53%. Furthermore, these efforts are failing to curb market volatility or sustainably stabilize the Shiba Inu price, despite significant commitment from the crypto community.
The price collapse and its consequences
Despite significant burning initiatives, SHIB price suffered a significant drop of 9.36% in a single day, from $0.00002489 to $0.00002235. This decline was partially mitigated by a slight recovery of 2.11%, but these deviations reflect significant volatility in an already fragile market. Such a decline comes after a temporary 9.19% rise recorded on Thursday, driven by a short-term rally in Bitcoin. However, this renewed optimism was not enough to sustain SHIB’s upward trajectory.
In addition to these fluctuations, several observers highlight the growing correlation between the performance of SHIB and Bitcoin. This dependency informs a broader issue, the structural vulnerability of altcoins to the movements of the dominant cryptocurrency. In addition, these variations raise questions about the effectiveness of token burning as a lever to stabilize or increase the value of cryptocurrencies. In a saturated crypto market where supply and demand mechanisms seem to be dictated by outside forces, these community initiatives seek to have a lasting impact on price.
Shiba Inu is going through a critical period where the massive token burn is showing its limits in the face of rising crypto investor expectations. These supply reductions, although significant, were not enough to restore SHIB’s value, calling into question their effectiveness. Implementing more diversified strategies, such as improving use cases or adjusting the project’s economic fundamentals, may prove essential to regain trust. This situation also sheds light on the challenges of community cryptocurrencies facing continued volatility and increased competition in the altcoin universe. The coming weeks will be crucial to see if the Shiba Inu can adapt or continue to be stuck in the bear dynamic.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations, and put into perspective the economic and social issues of this ongoing revolution.
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The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.