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Shib Record Burning Brought No Results: Price Drops 7% More

Thu, 05/19/2022 - 10:32
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Gamza Khanzadaev
SHIB burning is not yet living up to expectations
Shib Record Burning Brought No Results: Price Drops 7% More
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Despite record burnings reported by Shibburn, the price of one of the most hyped cryptocurrencies dropped 7% more in 24 hours, quoting below the $0.0000115 level. Following this negative trend, the total market capitalization of SHIB also decreased even more, by 7.5%, and now stands at the $6.29 billion level.

SHIB fans cheer each news of the burn and probably look at the updated data on the circulating coin supply every day. However, the harsh reality is that the coin has lost 87% in value and slightly more in capitalization since the October highs.

Let's take a closer look at the size of the supply and what has already been done.

According to the same Shibburn, 410,361,337,037,611 coins have been burned since the mechanism was launched, out of a primary quantity of 1 quadrillion. The remaining number is 589,638,662,962,388 and, to at least reach the size of last October, when the project had a capitalization of $54.29 billion, the token must grow by 800%.

With the current momentum and sentiment reigning on the market, even a 30% price spike seem impossible, let alone such an incredible explosion.

Such a picture suggests that the current burn rate is not enough, and many more should be burned than the last record, when 12.6 billion coins were burned.

Is it possible to do something more?

So far, the current mechanisms are based on the fact that users send their tokens to dead addresses and get passive income in other tokens for it. It seems that just the activity of such actions does not allow SHIB to fully compete with DOGE and establish itself as the main memecoin.

If we agree that the current SHIB burning mechanism is not sufficient enough, as well as the mechanisms of token usage, then the question arises: Can something else be done?

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.