Shiba Inu Burns 380 Million SHIB in July Amid Declining Burn Rate

Shiba Inu Burns 380 Million SHIB in July Amid Declining Burn Rate

The Shiba Inu team continues its commitment to reducing the token’s circulating supply through its ongoing burn program. Data from last month reveals that nearly 380 million SHIB tokens were sent to a null address across 178 transactions.

July 11th marked the peak burn day with over 70 million SHIB destroyed, followed closely by July 22nd with approximately 60 million SHIB. While the monthly burn total may seem substantial, its impact in USD terms remains minimal. Notably, July’s burn rate represents a sharp 58.5% decline compared to June.

Despite the reduced burn volume, consistent efforts to limit supply could eventually support SHIB’s price, provided that demand remains steady or increases. As basic economic principles suggest, a lower supply with constant or rising demand could lead to price appreciation.

SHIB Price Analysis

Shiba Inu, the second-largest meme coin by market cap, has struggled recently, experiencing a 4% drop in value within the last 24 hours. It’s currently trading around $0.00001583, according to CoinGecko. This decline aligns with a broader market downturn, with Bitcoin (BTC) briefly dipping below $64,000 and Ethereum (ETH) falling to $3,100.

However, some indicators suggest that a recovery could be on the horizon for SHIB. The Relative Strength Index (RSI), a metric that tracks the speed and change of price movements, indicates whether an asset is overbought or oversold. Currently, SHIB’s RSI is hovering around 30, a level that typically signals the asset is oversold and could be poised for a rebound.

Moreover, the potential progress of Shibarium, Shiba Inu’s layer-2 blockchain solution, could be a catalyst for future gains. Launched roughly a year ago, Shibarium aims to enhance the Shiba Inu ecosystem by reducing transaction costs, improving scalability, and increasing speed.