The Shiba Inu was one of the hardest hit by the crypto market withdrawal. Like any other meme coin, SHIB is volatile, hype follows, and when the hype starts to fade, the price quickly follows.
Once in the top 10 cryptocurrencies by market capitalization after a huge rally in 2021, SHIB has since lost its position. It recovered to 12th place but lost ground again after failing to hold an important technical level.
The Shiba Inu falls to 13th place
Last week, when Shiba Inu reached $0.000018, its market cap grew by two billion dollars. With this, the meme coin jumped from 16th place to 12th place in the list of top cryptocurrencies. This move puts it ahead of other leading cryptocurrencies such as MATIC, TRX and AVAX.
However, the market saw a decline on Thursday as Bitcoin fell below $22,000 for the first time in about a week. In the same 24-hour period, SHIB’s price has fallen by double digits, for a total of 12.76% at the time of writing.
The continued drop has taken the price of the meme coin to $0.0000129, where it currently sits, bringing its market cap to $7.11 billion. It lost its place in 12th place as stablecoin DAI saw more interest from investors, bringing its market cap to $7.12 billion. Polkadot has since moved to 11th place, while fierce rival Dogecoin is in 10th position with a market cap of $9.19 billion.
SHIB Increases Burn Rate
One thing that has helped increase the price of the Shiba Inu over the months is the burning that has been done. SHIB has a large supply of tokens, and in order for investors to get the price they want, the supply must decrease. As a result, community members began burning Shiba Inu tokens in an attempt to reduce the supply.
Last month, investors apparently increased their firing rate as they sought to preserve the token’s value. According to Shibburn, a website that tracks the number of SHIB tokens burned. The website shows that more than 410 trillion SHIB have been burned in total.
It takes into account the amount burned by Ethereum founder Vitalik Buterin in 2021. Over 200 million SHIB have also been burned in the last 24 hours alone. This shows a burn rate of 242% for meme coin. However, this is a slow burn for a token with a circulating supply of over 558 trillion. In order for SHIB to cancel another zero in its price, it needs to burn millions of dollars in SHIB to get a large amount of circulation.