The Shiba Inu community has been actively burning SHIB coins in recent weeks, with over 1 billion SHIB removed from circulation on a weekly basis. However, the burn activity seems to be facing a decline, with only slightly over 303 million SHIB removed in the last seven days. This represents a 90.17% drop compared to the previous week’s burn activity.
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The decline in burn activity has also been reflected in the price of SHIB, which has fallen by 11% in the past three days. The price decline has been attributed to the broader market slump, with Bitcoin also experiencing a significant drop in price.
The recent CPI data in the UK and comments from the head of the Atlanta Fed about potential interest rate hikes have also contributed to the market uncertainty. These factors have made investors cautious and prompted a sell-off in the crypto market.
The decline in SHIB burn activity and price highlights the importance of sustainability in the crypto market. While burn activities can help reduce the supply of a particular token and increase its value in the short term, it is not a sustainable long-term solution. The crypto market needs to focus on creating real-world use cases and establishing a clear regulatory framework to ensure its long-term sustainability.
Furthermore, investors need to exercise caution when investing in meme tokens like SHIB. These tokens are often highly volatile and can be susceptible to market manipulation. Investors should do their due diligence and research before investing in any crypto asset.
In conclusion, the recent decline in SHIB burn activity and price is a reminder of the importance of sustainability in the crypto market. The market needs to focus on creating real-world use cases and establishing a clear regulatory framework to ensure its long-term viability. Investors should also exercise caution and do their research before investing in any crypto asset.