CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

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. 

XRP/USD

2.58 Price
+1.330% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01286

XLM/USD

0.49 Price
-1.440% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.00245

ETH/USD

3,986.56 Price
-0.780% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 1.75

DOGE/USD

0.46 Price
+0.330% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.0023061

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
100006.65 USD
-155.3 -0.160%
SHIB/USD
Shiba Inu / USD
0.00003192 USD
-0.0000008 -2.460%

Rate this article

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.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 660,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading