On the 20th of October, yet another 10,000,000 SHIB got burned in a single transaction. To be more specific, the tokens were moved to e dead wallet, which is the practice SHIB decided to go with. This dead wallet is there to prevent anyone from using the tokens. In fact, this is where more than 41% of the total SHIB supply remains.
- SHIB burns another 10,000,000 (moved to a dead wallet).
- The supply burn rate went up by more than 500% the last couple of days.
- SHIB is standing at a psychological threshold of $0.000010.
In the last 24 hours, the supply burn rate has gone up by more than 500%. This is most likely due to the fact that SHIB is currently at a psychological price point. The current price of SHIB is just over $0.000010. The supply burn rate went up probably to fight any chances of SHIB falling below $0.000010. Because, if it does, the price might start snowballing downwards.
People are attempting to construct indicators such as these themselves because the cryptocurrency market doesn’t have as many screening options as the stock market or the price of conventional currencies in forex, for example.
What does a higher supply burn rate mean for Shiba Inu (SHIB)?
The supply burn rate of Shiba Inu (SHIB) is probably one of the most important aspects of the project. That’s because it produced way too many coins for its own good, to begin with. At the start of the project, SHIB had a total supply of over 1,000,000,000,000,000 (one quadrillion). More than 41% of this was burned, hence the dead wallet.
At the moment, Shiba Inu (SHIB) has a circulating supply of around 549,000,000,000 (549 billion).
The more tokens get burned, the more scarcity; hence, more people will want to have what is available less. This will naturally increase the price evaluation of SHIB over time if the interest remains the same or develops.
So, what does all that mean? Investors want the supply burn rate of Shiba Inu (SHIB) to go up as much as possible. This will increase the value of their assets. As such, their SHIB net worth will increase too.
At the moment, one of the core developers of the network Shytoshi Kusama mentioned that the supply burn is currently low-priority as they are focusing mainly on external projects such as the Shiba Eternity, a trading card game for mobile devices, and the Shiberse, Shiba Inu network’s own metaverse.
One thing we suggest is if you have invested in SHIB, keep an eye on the supply burn rate and any news related to it, as this can heavily impact the price evaluation of the token.
Let’s talk about one more thing that can negatively affect the price of SHIB.
Last time SHIB lost value
When the market was at its lowest in June, a similar occurrence last took place. Shiba Inu (SHIB) then went below $0.000010 and within minutes lost another 23%, dropping to a price of $0.0000073. Many investors believed that SHIB might be going out of business, but fortunately for everyone, consumers purchased the dip. It makes no difference whether they are doing it because they support the idea or are only interested in making money.
SHIB investors are currently wary of such event coming into play again. It is possible that experienced traders will benefit from that as they will sell as much as they can the moment SHIB goes below that threshold. After that, they will buy the dip and hope the price recovers over $0.000010 yet again.
Potential threat
If the price of SHIB falls below $0.000010 things can go in two main directions. The first of which is that investors will lose hope in the cryptocurrency as its gone below $0.000010 for the second time in 6 months. If that happens, we can see SHIB going for way less than $0.0000075. However, that cannot be predicted simply due to the interaction of the community with the token.
Are people going to sell in panic, or are traders simply going to go for profit and buy the dip, balancing the price out yet again? Only time will tell.
If you want to know what the price of SHIB will be by the end of the year click here.
The other option is for the price to drop and not recover for a while. However, the next bull cycle of the crypto market will most likely sell the memecoin. That’s because it is the only memecoin out there that is trying to develop, provide utility, and be an actual project rather than a joke that comes and goes.
Do not be surprised if, during the next bull run, Shiba Inu (SHIB) proves to be the better boy and outperforms Dogecoin.
If you want to stay in the loop with all crypto news, make sure to follow us on Google News.
