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570 Trillion SHIB Tokens May Be Affected by 27% Price Spike, Here's How

Tue, 01/17/2023 - 08:48
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Arman Shirinyan
Enormous amount of tokens left for burning, what could be main reason behind poor performance of SHIB in 2022
570 Trillion SHIB Tokens May Be Affected by 27% Price Spike, Here's How
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Shiba Inu's most recent bullrun brought the attention of investors back to the most popular meme token on the market. After its devastating performance in 2022, most retail investors decided to stop trading assets like SHIB and DOGE and mostly held their funds in stablecoins. However, things may change after the most recent rally.

One of the main drivers of Shiba Inu on the market is the enormous burning volume that has already burned more than 40% of the existing supply. However, by the middle of 2022, the Shiba Inu destruction pace slowed down, leaving almost 600 trillion SHIB floating in the space and providing solid pressure on the market.

SHIB supply
Source: Shibburn

However, even during the most recent and relatively slower run, Shiba Inu's burn rate spiked by over 5,000%, as we have covered at Historically, the amount of destroyed tokens ascends after the price of the token makes any kind of move, whether upward or downward.

With the most recent 27% rally, Shiba Inu faced a solid resistance level, as reflected in the 200-day moving average. The successful breakthrough will make SHIB eligible for a full-blown recovery run, which should bring the burning volume on the asset back to values we witnessed back in 2021.

Shiba Inu (SHIB), Luna Classic (LUNC), and ApeCoin (APE) Listed by Australian Crypto Exchange

At the proper burn rate, the 570 trillion supply should start melting much faster than now. The current burn rate of Shiba Inu barely reaches 100 million tokens per day. At press time, only 7 million SHIB have been burned in the last 24 hours. After more than 50% of the supply of SHIB is burned, analysts expect a sharp rise in the token's values.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.