- Shiba Inu’s burn rate surged by 482.88%, but the price lost 10% on the weekly charts
- Ethereum ETF’s launch could influence SHIB’s price
Shiba Inu (SHIB) has been underperforming recently, with its price slipping by over 10% on a weekly basis, according to Coingecko’s data. This, despite notable developments within the Shiba Inu ecosystem and broader crypto market events.
Shiba Inu’s burn rate
Shiba Inu has maintained an uptick in its burn rate lately, coinciding with the announcement of the Ethereum ETF launch. In fact, the burn rate metric jumped by 482.88% within 24 hours, indicating renewed interest in the memecoin. It remains uncertain if this burn rate is a carryover from previous activities in the week.
According to Shibburn, 60,380,203 SHIB tokens were burnt recently, reducing the total tokens sent to dead wallets.
HOURLY SHIB UPDATE$SHIB Price: $0.0000174 (1hr 0.17% ▲ | 24hr -2.04% ▼ )
Market Cap: $10,254,770,615 (-2.04% ▼)
Total Supply: 589,272,293,531,457TOKENS BURNT
Past 24Hrs: 60,380,203 (482.88% ▲)
Past 7 Days: 135,026,217 (27.66% ▲)— Shibburn (@shibburn) July 23, 2024
The burn rate has shown some erratic behavior though, with 135,026,217 SHIB tokens burnt over the past seven days. Five different wallet addresses were prominent in the latest burning round, each sending at least 9,999,999 SHIB to dead wallets, according to Shibburn.
To date, the Shiba Inu ecosystem has burnt a total of 410,727,706,468,542 SHIB, leaving 583,377,438,955,666 SHIB in circulation.
Where is the memecoin’s price heading?
Contrary to expectations, the price of Shiba Inu has not reflected the anticipated benefits of the increased burn rate.
At press time, SHIB was trading at $0.00001737, down over 2.45% in the last 24 hours. Its 24-hour price action seemed to be an extension of its volatility lately, with the memecoin losing 10% of its value in the last 7 days too.
Source: SHIB/USD, TradingView
Over the past month, SHIB has shown volatility, with prices dropping to as low as $0.000012, then recovering to above $0.000020, before stabilizing around $0.000017. This price movement highlights the unpredictable nature of the market.
Historically, the burn rate of Shiba Inu has aimed to reduce the total supply, thereby driving scarcity and potentially increasing the price.
However, this economic principle has not yet materialized in SHIB’s market performance. The total amount burnt to date and the remaining supply are significant, but the impact on the price remains to be seen.
Ethereum ETF launch and surge in SHIB whale activity
The launch of the Ethereum ETF is expected to go live for trading today, which might influence the broader crypto market, including Shiba Inu. Market analysts are watching closely to see if this development will help SHIB recover from its recent losses.
The ETF could bring renewed interest and positive sentiment to the market, potentially benefiting SHIB.
In fact, according to IntoTheBlock, Shiba Inu has been seeing a surge in large holder net flows – A metric that tracks the activity of crypto whales.
Source: IntoTheBlock
Over the last seven days, there has been an increase in large holder net flows, specifically, an increase in negative flows – A sign of significant selling.
Typically, a drop in large holder net flows might signal that major holders are offloading their positions. This could have contributed to the recent price declines in SHIB’s market.
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