Is the SHIB due to a bull run now that 400 trillion tokens are burned?
On April 23, the Shiba Inu Ecosystem launched a burning portal, one in which he started burning SHIB tokens. According to a blog post released by the developers of the Shiba Inu Project, the purpose of burning SHIB is to reduce the circulating supply of tokens, thereby inducing scarcity that may drive up the price.
To incentivize members of its ecosystem, the developers said,
“This portal was designed to reward $SHIB burners, with passive income recognition, in the form of $RYOSHI rewards. This means that 0.49% of all RYOSHI transactions will be distributed to owners of $burntSHIB. »
However, 65 days after the start of burning and with 410,370,460,561,720 SHIB tokens withdrawn from circulation, things did not go as the memecoin developers expected. Thanks to the general downturn in the cryptocurrency market, the price of SHIB has plummeted. With the team ready to start reward users who have burned their SHIB tokens, here’s what we know about alt performance since the burn portal launched.
410,370,460,561,720 tokens burned later
Over the past 65 days, the price of SHIB has steadily declined. On April 23, when the fire started, the price per SHIB token was $0.000024. Trading hands at $0.00001148 at the time of writing, a decline of 109% has been recorded.
Additionally, 65 days ago, the market capitalization was pegged at $13.36 billion. At press time, that amount had fallen to $6.28 billion.
Since the fire started, SHIB has struggled to keep the bears off her back. For the past 65 days, the relative strength index (RSI) of the token has been positioned below the neutral 50 region. However, the crypto saw some relief on June 21 and attempted a crossover.
This was met by a bear reaction, which pushed him further south. However, the bulls forced another correction, which pushed the RSI in the opposite direction. At press time, the RSI had a reading of 56.16.
Much noise to “burn”
On-chain data showed that no significant impact was observed on SHIB performance despite burning the parts for 65 days.
For example, the number of unique addresses involved in SHIB transactions daily has dropped since May 12. At press time, daily active users on the network had dropped by 90%.
Additionally, the Shiba Inu network has not seen much growth over the period under review. Data from Santiment showed that the number of new addresses created daily on the network has dropped by more than 200% since May 12.
On the social front, social volume has seen an 87% decline over the same period. However, social dominance increased steadily, albeit with intermittent declines, to register a 10% increase.