Shiba Inu has been one of the worst-hit in the crypto market retracement. Like any other meme coin, SHIB is highly volatile, following the hype, and once the hype had begun to die down, the price followed swiftly.
SHIB, which was once in the top 10 cryptocurrencies by market cap after a tremendous rally in 2021, has since lost its position. It made a recovery back to 12th place but has once again lost its footing after failing to hold an important technical level.
Shiba Inu’s run-up to $0.000018 last week had seen its market cap add a couple of billion dollars to it. With this, the meme coin jumped from 16th place to 12th place on the list of top cryptocurrencies. This move had put it ahead of other top cryptocurrencies such as MATIC, TRX, and AVAX.
However, the market saw a decline on Thursday when bitcoin fell below $22,000 for the first time in about a week. In the same 24-hour period, SHIB’s price had declined by double digits, down a total of 12.76% at the time of this writing.
The consistent decline had dragged the meme coin’s price down to $0.0000129, where it currently sits, bringing its market cap down to $7.11 billion. It had lost its place in the 12th as stablecoin DAI saw increased interest from investors, bringing its market cap to $7.12 billion. Polkadot has since claimed the 11th spot, while fierce rival Dogecoin sits at 10th position with a market cap of $9.19 billion.
SHIB Ramps Up Burn RateOne thing that has helped to prop up the price of Shiba Inu over the months has been the burn that was implemented. SHIB has a large supply of tokens, and for investors to get to the price they want, the supply would have to be reduced. Given this, community members have taken to burning SHIB tokens in a bid to reduce supply.
In the last month, investors have apparently ramped up their burn rate as they try to preserve the value of the token. According to Shibburn, a website that tracks the amount of SHIB tokens being burned. The website shows that more than 410 trillion SHIB has been burned in total. This takes into account the amount burned by Ethereum founder Vitalik Buterin back in 2021.
In the last 24 hours alone, more than 200 million SHIB has also been burned. This shows a 242% burn rate for the meme coin. Nevertheless, this is still a slow burn for a token with a circulating supply of more than 558 trillion. For SHIB to cancel another 0 off its price, there would be to be millions of dollars of SHIB burned to remove a significant volume from circulation.
Featured image from Capital.com, chart from TradingView.comFollow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
