Amid a downward price trend, members of the Shiba Inu community have proposed the implementation of a new token burning mechanism on two of the world’s largest cryptocurrency exchanges, Binance and Coinbase. This proposal is aimed at curbing the circulating supply of SHIB tokens in hopes of driving up its price.
This initiative seems to be inspired by Binance’s recent burn of over 59 billion LUNC tokens, constituting 51.9% of the total community burns. It demonstrates how an exchange-led burn can significantly impact a cryptocurrency’s market dynamics.
The SHIB community’s burn proposal comes alongside an impressive surge in the token’s burn rate, which has skyrocketed by 1235.99% in the last 24 hours. To date, a colossal tally of 410,727,033,470,341 SHIB tokens have been sent to inaccessible wallets, effectively being removed from circulation forever.
Despite the increased burn rate and community efforts, SHIB has faced a 1.5% decrease in value, as reported by Crypto News Flash. Currently, SHIB holds the 12th position in market cap rankings with a valuation of $10 billion. In comparison, its canine-themed counterpart, Dogecoin (DOGE), sits higher at the 10th spot, featuring a market capitalization of $17.9 billion.
Since its inception, SHIB has witnessed exponential growth, amassing an increase of approximately 31603829.2%. However, following an all-time high in 2021, it has retracted by roughly 80%. In the short term, the outlook for SHIB remains bearish according to the latest observations from Coinglass, with the market sentiment for the memecoin displaying a mix of attitudes.
The Relative Strength Index (RSI), a momentum indicator used by traders to gauge the overbought or oversold condition of an asset, suggests that SHIB may be oversold. This indicates potential opportunities for new investors interested in entering the market at a perceived low point.
Long-term investor sentiment for SHIB remains optimistic, with many holders looking forward to potential rallies that could establish new all-time highs. Despite the current market slump, such positive outlooks capture the essence of the community’s spirit, often resilient in the highly volatile cryptosphere.
In conclusion, as the Shiba Inu community rallies for token burns on Binance and Coinbase to uplift the SHIB market, it’s clear that the passionate base of supporters are not swayed by the short-term dips but remain fixed on the long-term potential of their favored cryptocurrency. With the recent rise in the burn rate and broader market dynamics indicating an oversold status, SHIB may still have promising horizons as both the community and investors watch keenly for the next move.
