The Shiba Inu burn rate has managed to propel price and reduce the meme coin’s supply. However, with the crypto market in turmoil, there’s only so much momentum SHIB can carry.
Shiba Inu price is down over 90% from its all-time high made in Oct. 2021. With the larger crypto market continuing its slide downwards, SHIB was no exception as price replicated the market fall.
The global crypto market cap was down below the $800 billion mark oscillating at $781.20 billion at press time. Most of the cryptocurrencies traded in red, Bitcoin, Ethereum, and top altcoins lost their key support levels.
As bearish tunes overtook the market, SHIB traded at $0.000008331 at the time of writing, down 3.16% on the daily and 9.39% over the week. Even though Shiba Inu price suffered a few positive trends aimed to push prices but were largely futile.
ETH Whales Love Shiba Inu
The aggressive SHIB burning and accumulation of tokens by Ethereum whales has often acted in favor of the token’s price. A recent update from WhaleStats showed that the top 2000 ETH whales are HODLing $70.39 million worth of SHIB.
Shiba Inu was the top 2,000 ETH whales’ biggest holding at press time, followed by MKR and UNI.
That said, the top 1,000 ETH whales were also holding $74.50 million worth of SHIB. Shiba Inu topped the whale chart for the top 1,000 ETH whales as well.
SHIB was evidently ETH whales’ favorite token to hold, as reported in previous articles. While this was a positive sign for Shiba Inu and could act in favor of the token’s short-term price trajectory, the larger market momentum hindered any short-term gains.
Shiba Inu Burn Rate Spikes
Apart from a good ranking on ETH whales’ portfolio, the aggressive SHIB burning has also been a key factor behind Shiba Inu price upticks in the past. In the early hours of Nov. 21, the Shiba Inu burn rate soared by over 300%.
Generally, token burning aims to reduce supply and pump prices amid higher demand. However, looking at the larger crypto market condition, despite reducing supply, demand in the market seemed to see no major bump.
A look at SHIB market-value to realized value (MVRVs) showed that long-term Shiba Inu holders were underwater. Notably, five-year, two-year, 180-day, and 90-day MVRVs were negative for SHIB presenting long-term holders’ pain.
IntoTheBlock’s In/Out of Money Indicator suggested that for now, the $0.000008 mark, where 23,740 addresses hold 16.04 trillion SHIB, can act as a strong support.
While there are fewer supply barriers ahead for the SHIB price, the larger market momentum could keep pulling SHIB price action down amid heightened pressure from bears.
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