Shiba Inu activated its contraction mechanism within the past 24 hours, incinerating a total of 6,878,412 Shiba Inu. $SHIB. According to Sibburna platform that monitors meme coin writing activity, represents an increase of 44.45%.
Shiba Inu prices will rise in the short term
Despite severe burns, Shiba Inu still has 585,474,878,489,555 lives. $SHIB In circulation. This shows the limits of the deflationary mechanism in reducing overall supply. In principle, combustion activity remains an ecological means of reducing circulating supply.
The idea is to lower the volume $SHIB We expect prices to rise according to the basic laws of supply and demand. However, with so many Shiba Inus in circulation, this was not always the case.
Therefore, some people think: The writing mechanism is not very importantbecause in most cases it does not give the expected result. While the numbers look good on paper, critics say the numbers in the millions $SHIB What is incinerated is not having the necessary impact on overall prices.
They claimed that there was more than 50 trillion yen. $SHIB Blood circulation and combustion activity are always carried out on a small scale and in a discretionary manner, but the action is primarily psychological.
Current burn activity has caused price increases. At the time of writing this article, Shiba Inu change It is currently trading at $0.000005916, representing an increase of 4.56% in the past 24 hours. Before the recent flare-up, Memecoin was trading at a low of $0.000005655.
$SHIB Fighting bearish market pressure
It is worth pointing out that not all combustion activity leads to an increase in prices. Shiba Inu started burn training in the past Unless there is a corresponding price increase.
This highlights the criticism that deflationary mechanisms face from some in the crypto industry.
Shiba Inu has lost over 51% of its value over the past 365 days and is currently facing a lack of liquidity.
After months of downward pressure, $SHIB facing a price test That could determine whether memecoins make a significant recovery.
