Shiba Inu’s $1 Dream: Can a 99% Burn Make It Happen?

• SHIB’s 6,220 percent burn rate surge sparks questions about the possibility of reaching one dollar.
• Kusama explains token burns alone cannot sustain SHIB and highlights DeFi projects for growth.
• SHIB faces price declines and bearish trends while volatility creates risks for traders and investors.

Shiba Inu (SHIB) has been the subject of debate as its current market capitalization stands at $13.87 billion, and its burn rate has surged by 6,220% in recent days. With over 410 trillion tokens burned from the initial supply of 999 trillion, discussions are rife on whether reducing 99% of SHIB’s circulating supply could push its price to $1.

Shiba Inu’s lead developer, Shytoshi Kusama, addressed questions about the feasibility of burning 99% of SHIB tokens. He said that while such a move is possible, it might not be enough to raise the token’s price to $1. According to him, token burns alone cannot sustain price growth without broader adoption and ecosystem development.

Kusama highlighted the importance of ongoing decentralized finance (DeFi) projects within the Shiba Inu network, suggesting they are key drivers of long-term value. He also said that aggressive token burns are risky. If SHIB’s price goes up, it could discourage new investors and slow adoption, which could stop further growth.

Market Performance: SHIB’s Price and Volume Trends

SHIB’s price has dropped by 10.08%, trading at $0.00002354 . The cryptocurrency’s market capitalization dropped to $13.87 billion, with trading volume decreasing by 14.75% to $1.46 billion.

Technical analysis furthers a cautious outlook. The MACD has entered a bearish crossover, signaling a decline in bullish momentum, while the RSI is at 53.26, leaning toward overbought conditions from previous sessions.

Read also: Shiba Inu Price Alert: Will SHIB Rebound or Crash Further?

Source: TradingView

According to Coinglass data, SHIB’s liquidation patterns reveal a correlation between price volatility and trader activity. Notable liquidation spikes occurred during rapid price pullbacks in late September and early November, with long liquidations outpacing shorts.

Source: Coinglass

This trend points out traders’ bullish stance and highlights the risks of trading in SHIB’s volatile market.

Key Takeaways for Investors

Shiba Inu’s increased burn rate aims to reduce its massive token supply and boost its price. However, this alone might not be enough for sustainable growth. The SHIB community needs to focus on building utility and increase adoption through new projects and developments.