The Shiba Inu community is proposing a new burning mechanism on Binance and Coinbase, which could lead to a significant decrease in the circulating supply of Shiba Inu’s SHIB. The asset has been experiencing mixed market sentiments and high volatility, putting it under intense pressure.
As volatility around Shiba Inu (SHIB) increases, the Shiba Inu community, also known as the “ShibArmy,” has put forward a proposal that could result in a substantial reduction in SHIB’s circulating supply. This new proposal has generated significant optimism within the memecoin community, with investors hopeful for a new all-time high.
The community is suggesting a new burning mechanism on two of the largest cryptocurrency exchanges, Binance and Coinbase. Similar mechanisms have proven successful for other crypto projects, such as Terra Luna (LUNA). In the past, CNF has highlighted the LUNA community’s efforts in this regard, with Binance playing a significant role in contributing to the burning of LUNA tokens.
A similar initiative could be in the works for SHIB, potentially driving the burning rate for SHIB and leading to lower supply and increased demand. According to the latest data from Shibburn, a SHIB burning tracking platform, the burn rate has increased by 1235.99% in the past 24 hours, resulting in the total amount of tokens burnt totaling 410,727,033,470,341, and leaving the total circulating supply at 583,325,252,660,104.
Despite these developments, SHIB is struggling to maintain bullish momentum. Data from Crypto News Flash shows that SHIB is down by 1.5%, extending its losses by 14% on the weekly chart.
In recent months, SHIB has emerged as a strong competitor to Dogecoin, the most popular memecoin in the space. Trading at $0.00001781, SHIB ranks 12th with a market cap of $10 billion. While the token has seen significant gains since its launch at the end of 2020, it has also experienced an 80% drop from its all-time high in 2021. In contrast, DOGE is trading at $0.1237 with a market cap of $17.9 billion, securing the 10th position on the market.
The short-term outlook for SHIB is bearish, with Coinglass data indicating mixed market sentiment for the memecoin. SHIB’s open interest (OI) has decreased by 7.52% to $33.49 million, while derivatives volume has increased by 8.34% to $117.26 million, potentially contributing to the token’s price volatility. The RSI, a technical indicator for measuring price momentum, also supports the idea of overselling, with the token resting near 27, suggesting the potential for new buyers to enter the market at a low price point.
Despite the bearish short-term outlook, investors remain optimistic about the price trend, with an all-time high in view. However, the bearish view is not currently grounded. If you would like to receive daily insights, subscribe to our newsletter for updates.