SHIB burn rate down 61.4% as price falls 91% from all-time high
By Alara Jordan
16:27, 22 November 2022
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
In the last 7 days, there have been a total of 99,774,731 $SHIB tokens burned and 18 transactions. #shibarmy
— Shibburn (@shibburn) November 13, 2022
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.
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
Related topics
