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Shiba Inu (SHIB) Price Reacts to 1,449% Rise of Burn Rate, What's Next?

Mon, 02/27/2023 - 08:40
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Arman Shirinyan
Shiba Inu sees significant increase in burn rate but struggles to break free from its local downtrend
Shiba Inu (SHIB) Price Reacts to 1,449% Rise of Burn Rate, What's Next?
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Shiba Inu (SHIB) has recently shown a 1,449% increase in its burn rate, which is a positive sign for the future of the cryptocurrency. However, despite the surge, SHIB has not yet managed to break out of the local downtrend it entered in February.

The amount of SHIB burned may not be as high as holders would like, but it is still a crucial process that should positively impact the cryptocurrency's value on the market.

The burn rate refers to the amount of cryptocurrency tokens that are intentionally destroyed by sending them to an unspendable address. This process reduces the total supply of a cryptocurrency, which can positively affect its price in the long run if demand for an asset remains at a high level. The SHIB community has been actively burning tokens to create scarcity and boost the value of the remaining tokens.

SHIB Chart
Source: TradingView

Despite the increase in the burn rate, SHIB has struggled to break out of its downtrend. The cryptocurrency has faced challenges in maintaining a consistent price level, and it has been losing out to some of its counterparts in the meme coin space. However, SHIB has recently bounced from its local support level of the 50-day moving average, which could be a positive sign for its future price performance.

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Overall, the increase in SHIB's burn rate is a positive development for the cryptocurrency. It shows that the SHIB community is actively working to create value and boost the price of the token. However, the cryptocurrency still faces a lot of challenges. Investors should monitor SHIB's progress and keep an eye on any developments that could affect its future value on the market.

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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.