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Shiba Inu (SHIB) falls despite increasing burn rate and large transactions

Shiba Inu (SHIB) falls despite increasing burn rate and large transactions

The cryptocurrency sector continues to suffer the protracted consequences of the collapse of FTX, once one of the largest crypto exchanges in the world, and the meme token Shiba Inu (SHIB) is no exception, despite recent positive developments.

As it happens, Shiba Inu was at press time trading at the price of $0.000008861, recording a decline of 4.39% across the previous 24 hours, as it adds up to the weekly loss of 7.48% and 8.43% on the monthly chart, with a market cap of $4.87 billion, as per data retrieved on December 12.

Shiba Inu 24-hour price chart. Source: Finbold

Positive developments fail to move price

Notably, the decentralized finance (DeFi) asset is recording these declines despite attracting significant investor interest, demonstrated by the addition of over 7,000 holders in December and transactions over $100,000, soaring 300% in one day.

Moreover, SHIB’s burn rate previously recorded a 24-hour spike of 2,350% on December 11 – one of the largest recently – before settling at around 15% at the time of publication, as per data retrieved from the Shibburn platform that tracks Shiba Inu burn rates.

SHIB burn rate on December 11. Source: Shibburn

As a reminder, the Shiba Inu team introduced the burn mechanism to reduce the amount of SHIB tokens in circulation, facilitate scarcity and increase the price, although the recent burn rate spike is yet to make an impact.

SHIB price predictions

Meanwhile, a machine learning algorithm has predicted that SHIB would be changing hands at an average price of $0.000008 on December 31, 2022, slightly lower than its previous estimation of $0.00001 reported by Finbold on December 7, 2022.

Shiba Inu 30-day forecast. Source: PricePredictions

In terms of 2022 Christmas day predictions, the algorithm also places the average price at $0.000008, whereas CoinCodex’s predictions from late November stood at $0.000009. Presently, the CoinCodex platform estimates that SHIB could hit $0.00001405 by December 25, 2022.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

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