Shiba Inu (SHIB), the popular meme coin, finds itself at a crossroads. While the project’s marketing lead, Lucie, recently expressed bullish sentiment on Twitter, the token’s price struggles to regain lost ground, and its burn rate has taken a nosedive.My lovely $SHIBnfa pic.twitter.com/lOXoHgHWUl
— ???????????????????? | SHIB.IO ????????♀️ (@LucieSHIB) March 20, 2024
At the time of writing, Shiba Inu was trading at $0.000027, up 5.0% in the last 24 hours, but sustained a 17% drop in value in the last seven days, data from Coingecko shows.
Despite Lucie’s confidence, analysts remain cautious. The cryptocurrency market is notoriously volatile, and SHIB’s future hinges on various factors beyond individual pronouncements.
The upcoming Bitcoin halving in April, where the daily production of new Bitcoins is cut in half, is often seen as a potential catalyst for a broader market upswing. However, its impact on SHIB specifically remains to be seen.
SHIB market cap currently at $16 billion. Chart: TradingView.com
Adding to the concerns is the recent plunge in SHIB’s burn rate. Initiatives like burning – sending tokens to unspendable wallets, effectively reducing supply – are often employed by meme coin projects to combat their massive supply and potentially drive price increases.
Shiba Inu Burn Rate Down
According to Shibburn, a platform tracking SHIB burns, the burn rate has fallen by nearly 73% in the last 24 hours compared to the previous day. This decline could dampen investor enthusiasm, as a lower burn rate weakens the argument for future price appreciation.
SHIB’s current market position also presents a challenge. While it sits comfortably at 11th place in terms of market capitalization, it’s nipping at the heels of its bigger meme coin brother, Dogecoin (DOGE), which holds the 10th spot on CoinMarketCap.
Both tokens have benefited from social media hype and celebrity endorsements in the past, but replicating that level of excitement might prove difficult.
Looking ahead, the success of Shiba Inu hinges on several key factors. The team’s ability to deliver on its development promises, reignite community engagement, and potentially find utility cases for the token beyond its meme coin status will be crucial.
Lucie’s optimism might spark a flicker of hope for SHIB holders, but the path to a new ATH remains paved with challenges.
Featured image from Kid Circus/Unsplash, chart from TradingView
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Author: Christian Encila
