Shiba Inu Burns 798 Million Tokens Amid Market Downturn

• Shiba Inu burn 798 million tokens to enhance its long-term value through reduced supply.
• SHIB price drops 20% despite massive token burn.
• On-chain activity for Shiba Inu decreases significantly, with a 50% reduction in daily transactions and a decline in new address creations.

Shiba Inu has recently made a significant move within the cryptocurrency sector by eliminating a substantial number of tokens from circulation. Over the past week, nearly 798 million SHIB tokens were burned, indicating a strategy to enhance the coin’s long-term value through reduced supply.

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Market Response to SHIB Token Burn

Despite the large-scale token removal, Shiba Inu’s market price did not react as might be expected. CoinMarketCap reported that the cryptocurrency’s value declined by 20% over the same period.

Furthermore, there has been a noticeable decrease in SHIB’s on-chain activity. Data from Santiment reveals a 50% reduction in the daily transactions involving unique SHIB addresses. This slowdown extended to creating new addresses, which also saw a significant decrease, further indicating falling interest in the coin.

In the derivatives market, open Interest in SHIB futures has declined 38% over the past week, pointing to reduced speculative interest in the asset. Despite these trends, the Longs/Shorts Ratio remained over 1, suggesting that traders remain optimistic about the future price of SHIB, maintaining positions that anticipate a price increase.

This recent activity in Shiba Inu’s ecosystem offers valuable insights into the relationship between token burns and market reactions, providing a clear snapshot of investor sentiment and market dynamics.

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