Changes in SHIB token burning have drawn attention, but the decline in activity on Shibarium may have negative implications for the coin.
Sharp Increase in SHIB Token Burning
The token SHIB, which is second in the ranking of meme coins by market capitalization, has seen a 3% decrease over the past week, trading at approximately $0.00001223. However, data reveals that the burn rate has skyrocketed by over 200,000% in the last 24 hours, resulting in approximately 4.5 million tokens sent to a null address. If even a slight increase in demand persists, this could positively impact the asset's valuation, making its circulation more limited.
Low Interest and Potential Risks
Interest in SHIB has significantly declined in recent months, according to Google Trends. Searches for the meme coin are now well below the record highs of late 2021 and local peaks in March last year. While this may appear as a negative signal, it is worth noting that high retail interest typically emerges at the end of bullish cycles when prices are rising. This current state might indicate there is room for growth, but it also raises questions about the sustainability of current pricing.
Analyst Projections and Current Situation
Despite negative indicators, some analysts on X continue to express optimism and predict potential growth for SHIB tokens. For instance, Mark.eth claims that Shiba Inu can 'make you rich' unlike any other altcoin. On the other hand, the number of daily transactions processed on the layer-2 solution Shibarium has plummeted to monthly lows, indicating decreased user engagement. Additionally, the increased net flow of tokens to exchanges raises selling pressure.
While the burning of SHIB tokens has reached record levels, the decline in interest and user activity may create additional risks for the coin's future prices. Analysts remain hopeful for growth opportunities, but the current situation requires careful analysis.
