Shibburn platform, which accumulates details about transactions that burn Shiba Inu and shares them on its website, has issued a tweet to address a question that has been voiced by many within the SHIB community recently: why is the price of SHIB not moving up despite massive and regular token burns?
"It's burning, but price not moving!"
— Shibburn (@shibburn) July 23, 2023
We wanted to address some misconceptions about burns and price. This applies to $SHIB and many other tokens as well.
A common question that comes our way is "Why isn't the price moving after "massive" burns?" At this moment, burns are… pic.twitter.com/uMuJQubpNO
"It's burning, but price not moving!"
Shibburn Twitter account has addressed "some misconceptions" related to SHIB burns and price. They stressed that this can be applied not only to Shiba Inu but to other cryptocurrencies too.
The tracker tweeted that burns alone, no matter how big they are, can hardly make any substantial impact on the price if they are not supported with large token buys. Even if enthusiasts within the SHIB community were able to remove 10 billion SHIB weekly, it would not have any visible effect on the price, Shibburn stated, when even bigger amounts are purchased every day and prices are sustained.
There are also other reasons that impact token prices aside from burns that were mentioned by Shibburn. The tweet stated that up to 90% of a token's supply can be removed with burns; however, if the token cannot brag any real demand among users, then such a token has no value. Supply and demand, Shibburn reminded its followers, are always the crucial factors that make a price move upward.
Top 100 accounts hold 400 trillion SHIB
Shibburn also said that, currently, nearly 400 trillion Shiba Inu coins from the circulating supply are held by the top 400 wallets, which mainly belong to centralized crypto trading platforms. Overall, there are 1,323,659 addresses holding SHIB. The meme coin's price can still surge based on the demand factor, the tweet states, if users and CEXes begin to accumulate more Shiba Inu, especially if there is a bull market.
Besides, a particular price reached by SHIB (or any other token), such as $0.01 (which every SHIB holder would love to see, of course) does not necessarily mean it has become successful. Many people have already sold SHIB and gained their profits as the price reached their target price.
Rather than focusing on the price, the Shibburn account suggests waiting to see how things unfold as more people adopt SHIB and as more projects are created on Shibarium, with the crypto space growing bigger in general.
Sunday SHIB burn news
To be more specific, over the past 24 hours, Shibburn has registered a total of 29,891,399 SHIB transferred to dead-end wallets in 11 transactions. The largest one carried 8,857,157 SHIB, while several smaller ones moved between three million and five million SHIB.
The burn rate of Shiba Inu thus dropped by 51.48%, compared to that demonstrated on Sunday.
Vladislav Sopov
Godfrey Benjamin