The recent increase in Shiba Inu's circulating supply has been linked to a sharp decline in its burn rate, leading to a price drop and heightened selling pressure.
Increase in Supply and Reduction in Burn Rate
Shiba Inu's circulating supply has surged due to a drastic collapse in its burn rate, exceeding 90%. This increase has intensified selling pressure and caused significant price declines, as confirmed by on-chain data.
Impact on Market Value and Trading Volumes
With the sharp increase in supply, SHIB prices have dropped notably: an 8.15% decline in the weekly rate and a 16.36% drop monthly. Trading volume has decreased by 3.08% to $197.77 million, reflecting market uncertainties.
Developer Messages and Plans
Lead Developer Kaal Dhairya has informed the community about ongoing ecosystem enhancements, particularly with Shibarium. Despite the burn initiatives, the slowdown raises concerns about the sustainability of the ecosystem and its market value.
The rise in circulating supply and the decline in Shiba Inu's burn rate raises questions about the sustainability of its ecosystem and investor concerns. Developers continue to work on improvements, but the current situation prompts questions regarding the token's future prospects.
