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The Shiba Inu (SHIB) meme currency has started the week with an impressive 1,100% increase in its burn rate, even though the token's price performance remains somewhat lackluster. Lately, SHIB has experienced volatility and stagnation due to the de-risking of the industry and overall outflow of funds from the market.
The burn rate is a measure of the number of tokens permanently removed from circulation. A higher burn rate often correlates with a positive price impact as it reduces the supply, potentially leading to an increase in demand. However, this relationship has not been evident in the case of Shiba Inu, as the price performance has remained subdued.
Recently, we have observed a pattern in the Shiba Inu burn rate, where it tends to spike toward the end of the trading week and remain stagnant on the weekends. This pattern could be attributed to declining market activity at the end of the week. However, the massive 1,100% burn rate increase this week has defied this trend, showing that the Shiba Inu community is still actively engaged in burning tokens.
Regarding the most recent price performance of SHIB, the meme currency is currently trading at $0.00001, having lost 5% in value over the last week. It is also trading under both the 50- and 200-day moving averages, indicating a bearish trend. Moreover, the descending trading volume and the Relative Strength Index (RSI) hovering around 50 further highlight the underwhelming price performance.
Despite the increase in burn rate, the Shiba Inu token has not yet shown any significant signs of recovery in terms of price. Market sentiment toward meme currencies like Shiba Inu has been cautious due to the ongoing de-risking trend in the industry, which could be impacting SHIB's price performance.
Vladislav Sopov