‘More SHIB Burns Needed To Move Price’

Despite the strong increase in SHIB burn numbers in recent weeks, the Shiba Inu price is currently lagging behind the expectations of the community. While SHIB burn numbers are already very high in the first half of April, March 2023 was the strongest month since October 2022.

As Bitcoinist reported, SHIB burns are showing a positive trend. In March, 6.78 billion SHIB tokens were burned in 540 transactions. Both the absolute number of SHIB destroyed and the number of transactions thus increased significantly compared to previous months.

In February, only 352.21 million SHIB were burned in 128 separate transactions through community burn initiatives. Overall, the March burn is the highest since October 2022. In January 2023, there were 1.12 billion burned in 223 transactions; in December 2022, 2.072 billion SHIB (in 349 transactions); in November, 1.922 billion SHIB (in 381 transactions); and in October, 9.05 billion SHIB (in 2,433 transactions).

Shiba Inu Lead Dev Comments On Relationship Between Price And Burns

Despite this strong trend, the SHIB price has not increased in the same proportion in recent weeks. As a result, a member of the Shiba Inu Telegram expressed frustration, to which Shytoshi Kusama, the lead developer of SHIB, responded and gave his perspective on the matter.

Kusama first analyzed the state of the crypto market and explained that SHIB is an interesting investment for swing traders. In addition, he addressed the “classic” cycle of interest rotation from Bitcoin to Ethereum to altcoins, which numerous crypto investors are currently waiting for.

While Bitcoin has gained a lot of dominance (overall crypto market share) in recent weeks, ETH surged after the Shanghai upgrade. Therefore, some traders expect an altcoin season to start soon, which could also benefit the SHIB price. Kusama wrote:

I didn’t see it as fixed. As your bank for a 1% return and watch how they laugh. And I’ve also seen some serious swings so swing traders are loving it. Not to mention the cycle of BTC -> ETH -> Alts.

In addition, Kusama stated that burns are currently far too low to affect the SHIB price. The Shiba Inu developer probably alludes to the fact that while SHIB burn numbers always sound very high, but they are much less impressive when denominated in USD.

For example, the 6.78 billion SHIB burned in March was worth “only” $76,200. Compared to the current total circulating supply of 573,935,226,818,778 SHIB, just 0.00118% of all SHIB in circulation were wiped out with all burns in March. Accordingly, Kusama is calling for more use cases for Shiba Inu which are burning SHIB in order to increase the price:

Anyways, we are not even close to touching the numbers of burns needed to move SHIB based on burns alone. That’s why we must introduce new technologies, utilities and grow the ecosystem and adoption. When you understand that, you see why past moves are vital and our future ones solidify our dominance.

At press time, the SHIB price stood at $0.00001129 and was once again rejected at the key resistance line ($0.00001151).

Featured image from Gfinity Esports, chart from TradingView.com