Crucial XRP Metric Plunges to Zero, Shiba Inu Risks Further Losses, Dogecoin Price Falls Into Death Cross — Crypto News Digest

XRP burn rate plummets

No burns raises questions about efficiency of mechanism itself.

• Burn activity collapse. As of Sept. 21, just 163 XRP burned in one day, far below July–August peaks.

When it comes to tokenomics, XRP has always functioned differently from Ethereum or Shiba Inu. While SHIB actively destroys supply through coordinated burns and ETH introduced a fee-burning mechanism through EIP-1559, XRP's burn is exclusively connected to transaction fees on the Ripple network. 

XRP is only ever destroyed once users complete transactions, in which case the fee, typically a penny or less, is permanently taken out of circulation.

• Impact on scarcity. Near-zero burns mean no meaningful supply reduction.

The quantity of XRP burned as fees has drastically declined over the last three months, becoming almost insignificant at this point. As of Sept. 21, data indicates that only 163 XRP had been burned in a single day, which is a significant decline from the July and early

August peaks when network activity momentarily increased. The long-term dynamics of supply and the general use of XRP Ledger are seriously called into question by this consistent decline.

Since burn rates are nearly zero, the effect on supply reduction is essentially meaningless. This calls into question one of the bullish theories that could be applied to XRP: Scarcity through destruction. XRP is stuck in its enormous circulating supply of almost 60 billion tokens without a proper circulation removal mechanism.

Shiba Inu faces double trouble

Shiba Inu price future doesn't look that bright.

• Shibarium hack. Flash-loan exploit compromised 10 of 12 validators.

Shiba Inu is encountering a pretty problematic market period. The downside risk might be greater than most people realize, given a recent significant hack on its Shibarium network and concerning on-chain metrics.

SHIB’s Layer-2 scaling solution, Shibarium, was compromised earlier this month through a flash-loan attack that compromised validator keys. The attacker took over 10 of the 12 validators and, among other tokens, depleted 92 billion SHIB and 224.57 ETH. 

Asset recovery is uncertain, and the bridge connecting assets in and out of Shibarium is still halted. The confidence of investors has been shaken by this incident. SHIB and other meme coins saw a steep decline in value in the hours following the exploit.

• Market impact. SHIB and other meme coins fell sharply after the exploit.

In addition to the hack, netflow data is negative, particularly from big holders. The fact that large-holder netflows are now negative suggests that whales are trimming or leaving their positions rather than building up. A generally negative exchange netflow, on the other hand, indicates that more SHIB is being taken out of exchanges than deposited. 

This is frequently interpreted as a sign of bullish accumulation, but in this instance, it may be a cover for declining buyer demand and growing uncertainty.

Dogecoin price falls Into death cross

Dogecoin has created death cross on chart, but there's something else to watch.

• DOGE at risk. The price dropped from $0.2889 amid selling pressure.

Dogecoin has created a death cross on its short-term charts amid recent selling pressure in the market. Dogecoin saw selling pressure heading into the weekend, falling from a high of $0.2889 on Thursday to a low of $0.2631 on Saturday.

Amid the recent price drop, Dogecoin has created a death cross on the hourly chart, which forms when a short-term MA falls below a long-term moving average, considered a bearish indication.

• Technical signals. Hourly death cross formed.

At the time of writing, DOGE was up 0.6% in the last 24 hours to $0.267 and down 5.46% weekly. Dogecoin returned below its hourly moving averages 50 and 200 at $0.267 and $0.274, following a drop from Sept. 19.

It will be watched for a return above these key levels in the very short term for a rise to $0.288 and $0.307. According to Ali, a crypto analyst, breaking $0.29 might send Dogecoin (DOGE) flying to $0.36 and even $0.45. Support remains at $0.2568 in the event of a drop.