Shiba Inu, one of the most popular meme coins, has burned 57.2 million tokens, according to data from Shibburn.com. Can it increase SHIB price?
While Shibburn’s data represents another step in the token’s deflation process, the total value of tokens burned is only about $1258 at today’s prices. Compared to Shiba Inu’s massive market cap of approximately $12.9 billion, the impact will be minimal. Burning tokens is a strategy to reduce the total supply of a cryptocurrency, thereby increasing its scarcity and value. However, the small-area burn suggests that it has an immediate impact on Shiba Inus Price history is limited. However, there is more to the story
The optimism of the Shiba Inu community and ecosystem
Shiba Inu has become a speculative asset and is attracting a lot of interest due to its large and active community. This involvement was crucial to its survival in the volatile meme currency space.
Shiba Inu (SHIB) price chart. Source: Brave New Coin
The coin has maintained its relative stability, recently trading at just above $0.000028 and holding its position near the 21-day moving average (DMA). Positive sentiment remains high and is reinforced by a bounce from the 50DMA in December, suggesting that bullish momentum could continue.
Some of this optimism is due to broader developments in the United States, where the new Trump administration and Congress are likely to support cryptocurrency. This could provide regulatory certainty and benefit the entire cryptocurrency industry, including meme coins like Shiba Inu.
Analysis of moving average data from Trading View for one month…
