SHIB Team Explains: Why Massive Burns Aren't Driving Price Movement

SHIB Team Explains: Why Massive Burns Aren’t Driving Price Movement

Time Stamp: July 27, 2023 2:27 PM
5 hours ago 2 mins read category : News
  • The SHIB team addresses the question “Why isn’t the price moving after massive burns?”.
  • Burns alone may not significantly impact the price unless they match the current purchase rate.
  • SHIB’s growth potential is limitless as long as it remains active, retains community interest, and continues to be adopted.

The Shiba Inu team recently addressed a common question that has been circulating among the community: “Why isn’t the price moving after massive burns?” The team clarified that burns alone are unlikely to significantly impact the price unless they match the current purchase rate. For instance, burning 10 billion tokens in a week will not impact the price when larger transfers are being purchased daily.

The price of a token is not solely determined by burns. A new token can burn 90% of their supply, but if there’s no demand for that token, it doesn’t hold much value. Supply and demand have always been the key factors for price movement. 

If the demand for the token surges, and more people start buying it, the available supply reduces creating scarcity. This increased demand and decreased supply can positively influence the token’s price.

Looking ahead, the future of Shiba Inu in the crypto space appears promising. As long as Shiba Inu remains active, retains community interest, and continues to be adopted, the potential for growth is limitless. 

The crypto world is still growing, and further growth is inevitable. Consider the potential impact when giants like Google and Apple fully adopt cryptocurrency. Shiba Inu is just two years old, and it’s still early days. Remember, a lot of what’s being built hasn’t yet been released.

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