Shiba Inu (SHIB) made headlines in 2023 with its impressive burn rate, as the token burned more than 72 billion tokens. However, despite the significant number of tokens burned, their total worth was just under a million dollars at press time. This raises questions about the potential price predictions for SHIB in 2024.
The burn rate is often seen as a positive sign for cryptocurrencies, as it reduces the total supply and can potentially increase the value of the remaining tokens. However, in the case of SHIB, the burn rate alone does not seem to have a significant impact on its price.
One possible explanation for this is the large supply of SHIB tokens. According to CoinMarketCap, the total supply of SHIB is over 500 trillion tokens. Even with the burn rate of 72 billion tokens, this is just a fraction of the total supply. This means that the impact of the burn rate on the price is diluted by the sheer number of tokens in circulation.
Additionally, the market sentiment and demand for SHIB also play a crucial role in determining its price. While a burn rate can be seen as a positive indicator, it does not guarantee a price increase if there is no corresponding increase in demand.
In conclusion, while SHIB’s burn rate in 2023 was impressive in terms of the number of tokens burned, it did not have a significant impact on its price. The large supply of SHIB tokens and the overall market sentiment are key factors to consider when making price predictions for SHIB in 2024.
Hot take: Despite the attention-grabbing burn rate, SHIB’s price predictions for 2024 should take into account the factors of token supply and market demand. Burning tokens alone may not be enough to drive significant price increases.
