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Shiba Inu Price Cannot Be Influenced Solely By Burns, Here’s Where SHIB Holders Should Look For Possible Catalysts

Shiba Inu token burn
Shiba Inu token burn

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  • Shiba Inu lead developer Shytoshi Kusama says SHIB price is not solely dependent on burns.
  • The comment comes after the community burnt a staggering 3.26 billion SHIB tokens from circulation in April 2023.
  • This explains why the team has been focused on developing new technologies and utilities to foster SHIB adoption

Shiba Inu (SHIB) price continues to underperform relative to other blue-chip tokens despite dramatic growth in the tokens’ burn events. Unresponsiveness to efforts toward reducing supply and increasing demand has disappointed some community members.

Shiba Inu burns

March 2023 recorded the highest number of burns since October 2022.

A total of 6.78 billion SHIB tokens were burned over 540 transactions last month, up from 352.21 million SHIB tokens being burned in 128 transactions in February.

Similarly, April recorded substantial burn numbers, with the SHIB community eliminating an outstanding 3,269,676,832 SHIB tokens from circulation in April 2023. Notably, this is worth around (3.26 billion) at current rates. The scheme to reduce the total supply of the meme-themed cryptocurrency was achieved in 125 transactions.

The total amount burned represents a significant decrease in the burn rate of the cryptocurrency seen in the past month. This was when 6,782,788,547 (6.78 billion) SHIB tokens were permanently removed from circulation through 540 individual transactions. This is per data from Shib burn tracker Shibburn, which revealed the data on Twitter.

While the burn numbers indicate a strong upward trajectory, the price does not reflect the same, hence the frustration among token holders. In response, the lead developer of SHIB, Shytoshi Kusama, has offered his perspective on the matter.

Shiba Inu’s Shytoshi Kusama- “Current Burn Rates Are Insufficient To Impact The SHIB Price.”

Kusama noted that more needs to be done, as the current burn rates are not enough to influence Shiba Inu price. He refers to the fact that while the SHIB burn numbers seem significant, “they are far less impressive when measured in USD.” Citing his comment on Telegram:

We are not even close to touching the numbers of burns needed to move SHIB based on burns alone. That’s why we must introduce new technologies and utilities and grow the ecosystem and adoption. When you understand that, you see why past moves are vital and our future ones solidify our dominance.

According to Kusama, “the price of Shiba Inu cannot be influenced solely by burns,” and more burns are needed to move its price.

SHIB Team leverages technology to drive Shiba Inu price

Accordingly, the Shiba Inu team has channeled some of its attention toward developing new technologies and utilities to promote SHIB adoption. Kusama believes that only through efforts of this kind can Shiba Inu price witness or deliver a significant increase. This is the desire of every token holder.

Recently, a massive SHIB whale expanded its portfolio to approximately 5 trillion tokens when it added 171.68 billion SHIB tokens, worth approximately $1.88 million. This was done in four different transactions. Etherscan data shows

Based on data from IntoTheBlock, a significant portion of SHIB tokens are now in the hands of long-term investors, indicating the growing interest in the token among those with an extended investment outlook.

SHIB whales
Source: IntoTheBlock, Ownership Indicators

Shiba Inu Price Remains Bearish

At the time of writing, Shiba Inu price is $0.00000996, up a meager 0.44% in the last 24 hours. Despite the recent burn event, the meme coin is down 4% in the last week, 14% in the last two weeks and 7.8% in the last month.

Shiba Inu price
TradingView Chart: SHIB/USDT 1-Day chart

The general sentiment in the SHIB market is bearish with signs of a continued downtrend. This comes amid growing overhead pressure. It explains why the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) momentum indicators point to more losses for investors.

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