TL;DR
- Shiba Inu’s price declined after a brief surge, with some metrics indicating further bearish trends.
- The token’s burn rate has sharply decreased, with over half of its investors currently experiencing losses.
The Overall Bearish Conditions
The price of Shiba Inu (SHIB) witnessed a minor uptick last week, surging to as high as $0.00001407 on September 14. However, the rally was short-lived, and the valuation tumbled in the past 24 hours to the current $0.0000133.
The meme coin’s price plunge aligns with some declining on-chain metrics, signaling that bulls might suffer further pain in the near future. According to IntoTheBlock, Net Network Growth (a momentum signal that gives “a pulse of the true growth of the token’s underlying network”) has fallen by 0.19% daily.
Large transaction volume (the aggregated daily volume where each on-chain transaction exceeds $100,000) has reached $5.3 million, representing a 76% crash on a daily scale.
Last but not least, we will focus on the Shiba Inu burning mechanism. Over the past 24 hours, the burn rate has collapsed by 96%, resulting in only 227,000 tokens sent to a null address. The program’s ultimate goal is to reduce the huge circulating supply of SHIB, making it scarcer and potentially more valuable in the future (assuming demand doesn’t head south). More than 410 trillion tokens have been destroyed since the launch of the effort, leaving approximately 583 trillion in circulation.
Not long ago, the team behind Shibarium (Shiba Inu’s layer-2 scaling solution) also adopted a burning mechanism called a “Burn Portal.” It differs from the original program since it relies on BONE – the governance token of the ecosystem. The coin is used to pay for gas fees. A portion of the costs, paid in BONE, is used to purchase SHIB tokens, which are subsequently sent to a null address. Users are able to initiate a burn only if they have more than 100 BONE.
SHIB Trails Behind DOGE and PEPE on This Front
Unsurprisingly, Shiba Inu’s poor performance has negatively affected investors in the asset. IntoTheBlock data shows that 45% of the HODLers are sitting on paper profits, whereas 52% are underwater. The situation was much different in March this year when
