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SHIB burn rate down 61.4% as price falls 91% from all-time high

By Alara Jordan

16:27, 22 November 2022

An online tracker shows SHIB burning has dropped more than 60% in recent months – Photo: Shutterstock

The popular memecoin Shiba Inu’s ($SHIB) burn rate has fallen dramatically over the past few weeks as the effects of FTX's collapse continues to hurt the wider cryptocurrency market.

SHIB burning decreased significantly according to an online tracker, and dropped more than 64% in recent months.

The price of Shiba Inu is also down more than 90% from its all-time high of $0.000079 in October 2021. SHIB’s price is reflective of the wider cryptocurrency market, which has continued to slide downwards since the collapse of FTX.

SHIB to USD

However, Shiba Inu’s burn tracker, Shibburn, tweeted that process should not influence the price of SHIB. At the time of writing, SHIB is trading at $0.0000086, down 0.9% in the previous 24 hours. 

BTC/USD

70,436.60 Price
-0.420% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

DOGE/USD

0.21 Price
-3.990% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

XRP/USD

0.63 Price
-1.000% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

BCH/USD

574.65 Price
-0.480% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

Wider market effect

The chaos surrounding FTX and its former chief executive, Sam Bankman-Fried, has not only hurt the market and overall investor trust, but it has also had a knock-on effect, with rival cryptocurrency firms falling victim to rumours of similar liquidity issues. 

The spotlight was on Crypto.com after users noticed that withdrawals were taking longer than expected. However, any rumours of a potential liquidity crunch were quickly addressed by Crypto.com’s chief executive, Kris Marszalek, after he tweeted that everything remains “business as usual” and that the exchange would share a proof-of-reserves audit.

Crypto.com’s proof-of-reserves report showed digital assets worth  $3bn in the exchange’s possession, with a plurality (33%) held in bitcoin (BTC), and a surprising $519m of Shiba Inu, which made up around 20% of all its assets.

Markets in this article

BTC/USD
Bitcoin / USD
70436.60 USD
-294.75 -0.420%
SHIB/USD
Shiba Inu / USD
0.00003182 USD
-0.00000104 -3.250%

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Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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