Iulian52300
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Why is SHIBA INU’s burn rate skyrocketing but the price isn’t rising?
Recently, we’ve seen an explosive increase in SHIB tokens being burned — over a 100,000% surge in just 24 hours! Sounds impressive, but the price hasn’t moved up significantly. How is that possible?
Here’s a quick breakdown:
1. Burning reduces supply but doesn’t guarantee higher demand
Burning tokens means fewer SHIB are available on the market. But for the price to rise, demand has to increase or at least stay steady. If buyers don’t step up, the price may not react immediately.
2. Market speculation can offset burn effects
Some investors might sell anticipating quick profits from the burn news, putting temporary downward pressure on the price.
3. Multiple factors influence price simultaneously
Overall crypto market sentiment, macroeconomic events, and large sell-offs can keep the price down even as supply shrinks.
4. Burn effects take time to reflect in price
Supply reduction supports price growth in the medium to long term, but it’s not always instant. It may take days or weeks for the burn’s impact to show.
Bottom line: The massive SHIB burn is a positive signal for tokenomics and tightens supply. However, for the price to jump, sustained demand and favorable market conditions are needed. So, patience and close watching are key.
#SHIB #SHIBA #CryptoBurn #CryptoNews #Altcoins #Cryptocurrency #DeFi #Blockchain #CryptoTrends #CryptoInvesting #Tokenomics #CryptoCommunity
Recently, we’ve seen an explosive increase in SHIB tokens being burned — over a 100,000% surge in just 24 hours! Sounds impressive, but the price hasn’t moved up significantly. How is that possible?
Here’s a quick breakdown:
1. Burning reduces supply but doesn’t guarantee higher demand
Burning tokens means fewer SHIB are available on the market. But for the price to rise, demand has to increase or at least stay steady. If buyers don’t step up, the price may not react immediately.
2. Market speculation can offset burn effects
Some investors might sell anticipating quick profits from the burn news, putting temporary downward pressure on the price.
3. Multiple factors influence price simultaneously
Overall crypto market sentiment, macroeconomic events, and large sell-offs can keep the price down even as supply shrinks.
4. Burn effects take time to reflect in price
Supply reduction supports price growth in the medium to long term, but it’s not always instant. It may take days or weeks for the burn’s impact to show.
Bottom line: The massive SHIB burn is a positive signal for tokenomics and tightens supply. However, for the price to jump, sustained demand and favorable market conditions are needed. So, patience and close watching are key.
#SHIB #SHIBA #CryptoBurn #CryptoNews #Altcoins #Cryptocurrency #DeFi #Blockchain #CryptoTrends #CryptoInvesting #Tokenomics #CryptoCommunity
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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