27.5 Million SHIB Burned in Last 24 Hours, But Is It Enough for Token To Rally?
Millions of burned Shiba Inu tokens are no big deal for token’s value
A significant amount of Shiba Inu tokens has been burned in the last 24 hours, making this one of the most productive days for the token’s burning machine in a relatively long period of time. However, even millions of burned tokens might not be enough to provide a significant effect on Shiba Inu’s market value.
With almost 30 million Shiba Inu burned in the last 24 hours, the market will no longer see only a few hundred worth of meme tokens, which is obviously never going to have an effect on an asset with a $4.5 billion market capitalization.
Recently, U.Today covered how Shiba Inu’s burning supply spiked by 640% with millions of SHIB getting destroyed on that day. However, even if we combine all the burning volume throughout the last week, we will barely get $10,000 worth of Shiba Inu tokens burned by users, which is the exact reason behind the absence of any kind of effect on the token’s price.
In order to make Shiba Inu move, the daily burning value of SHIB tokens should at least reach a few billion. With only a few million of Shiba Inu burned, the token’s placement on the market will not change, even during better market conditions.
By taking a quick look at the current state of Shiba Inu on the market, it becomes obvious that the token is greatly oversold and could rally upward with the help of any kind of inflow. Unfortunately, the existing market conditions and the lack of investors ready to take risks lead to poor performance of meme currencies like Shiba Inu and Dogecoin.