Shiba Inu token burn rate surges in August amid price decline

In August 2024, Shiba Inu (CRYPTO:SHIB) saw a significant increase in its token burn rate, with over 680 million tokens removed from circulation through 118 transactions.

This represents a nearly 80% rise compared to the previous month, with the highest single-day burn occurring on August 31, when almost 300 million tokens were destroyed.

Despite these efforts to reduce the token supply, SHIB's price has continued to decline.

The cryptocurrency has experienced an 11% decrease over the past week, according to market data.

This price trend mirrors the broader downturn in the cryptocurrency market.

The burn rate, although substantial, has not yet translated into a price rally.

The USD equivalent of the burned tokens is less than $10,000, indicating that while the supply is being reduced, the impact on price is not yet evident.

Continued burning could potentially increase the token’s scarcity, which might help drive up the price if demand remains steady or improves.

Technical indicators suggest mixed signals for SHIB’s future.

According to the Relative Strength Index (RSI), a measure of price momentum, SHIB might be oversold.

An RSI reading below 30 often signals a potential buying opportunity.

As of September 1, the RSI is hovering around 36.5, suggesting a possible rebound.

Additionally, large transaction volumes have been noted, with a daily increase of almost 4% in transactions greater than $100,000, which could be a positive signal for SHIB.

However, according to other metrics such as Net Network Growth and a decreasing number of investors with paper profits, further correction might be possible.

While the token burn rate for SHIB has surged, the cryptocurrency's price continues to face downward pressure amidst a challenging market environment.

At the time of writing, the Shiba Inu (SHIB) price was $0.00001373.