The Shiba Inu community has been busy burning tokens over the past few days, with over 27 million SHIB tokens entering a dead wallet in just six transactions. The SHIB burn tracker, Shibburn, shared the update on Twitter, revealing that the Shiba Inu community had burned over 1.8 billion tokens in the past seven days.
Despite the massive burns, the price of SHIB has continued to slide along with the rest of the cryptocurrency market. As of April 22, SHIB was trading in the red, showing a loss of 0.05% over the past hour and 3.6% over the past 24 hours. Over the past seven days, SHIB has seen a loss of 8.9% in value.
The market-wide downtrend has also affected BTC and ETH, which are down 10.57% and 12.04% over the past seven days, respectively.
So, why hasn’t the burning of SHIB tokens had a positive effect on the price of the cryptocurrency?
One reason is that burning tokens doesn’t necessarily create demand for the token. In fact, burning tokens can sometimes reduce demand by reducing the supply of tokens. Additionally, the burning of tokens doesn’t necessarily signal that the token is more valuable or useful.
Another reason is that the cryptocurrency market is currently experiencing a downtrend. Many investors are selling their cryptocurrency holdings, causing prices to drop across the board. This trend has been particularly pronounced over the past few days, with the market losing billions of dollars in value.
Despite the market downturn, the Shiba Inu team has continued to push forward with new developments. One notable achievement is the removal of the SHIB token from Binance’s innovation zone, where new assets are typically placed until they have proven their worth. Binance has reviewed SHIB and decided that it is worth competing among the top players.
The Shiba Inu team is also working on ShibaSwap 2.0, the anticipated upgrade to the decentralized exchange that was launched earlier this year. Shiba Inu lead developer Shytoshi Kusama has hinted that the upgrade will be launching soon.
While the burning of SHIB tokens hasn’t had an immediate effect on the price of the cryptocurrency, it is still an important development for the Shiba Inu community. By reducing the supply of tokens, the burns could eventually create more demand for SHIB, especially if the cryptocurrency market recovers from its current downturn.
In the meantime, investors are keeping a close eye on developments within the Shiba Inu community and the wider cryptocurrency market. While the current trend is down, many investors believe that the long-term prospects for cryptocurrency are still strong. As always, investors should be cautious and do their own research before investing in any cryptocurrency.