Shiba Inu (SHIB) has started the year with an 11% decline in its price, despite speculations of a significant token burn event that could potentially reverse the downtrend. The meme token’s flat price movement continues even after advancements such as the introduction of its Layer-2 project, Shibarium.
Optimism has been generated by rumors of a substantial token burn, sparked by a post from Ragnar Shib suggesting that 9.25 trillion SHIB could be burned this month. The crypto community believes that such a significant burn could notably decrease the SHIB supply and potentially increase its value.
However, the actual burn rate depends on the ecosystem activity of Shiba Inu. Daily transactions on the network have decreased, with only 206.6 million SHIB tokens burned in the last seven days, far from the monthly goal of 9.25 trillion.
Recent data shows SHIB has witnessed an 11% price drop since the beginning of the year, with a nearly 5% decrease over the past 30 days. This performance has led to SHIB trading 89% below its all-time high and struggling to maintain its position among the top 15 cryptocurrencies by market value.
In conclusion, Shiba Inu has seen a significant dip, retreating to a support level of 4 dollars, despite the Shibarium launch. While token burn expectations and claims of a potential 9.25 trillion SHIB burn offer hope for a price increase, the decrease in daily transactions and the shortfall in actual token burns challenge this optimism, reflecting SHIB’s underperformance in the market.