The meme coin Shiba Inu (SHIB SHIB), considered Dogecoin’s everlasting competitor, has once again sparked a surge of discussions among members of the cryptocurrency community worldwide. As stated in an article published on X by the Shiba Arab Army, Shiba Inu is reportedly considering launching a new burn initiative on Binance and Coinbase.
Despite the recent bearish movement of the Shiba Inu price, this news has generated tremendous confidence for the future price movements of the Shiba Inu. First, let’s look more in-depth at this brand-new SHIB burn idea.
So, what exactly is the SHIB Burn Initiative all about?
The community, in a post published on X on June 21 by the Shiba Arab Army, brought attention to the fact that token burns significantly strengthen a cryptocurrency‘s market dynamics. The post reaffirmed that the primary cause of scarcity is the elimination of a coin‘s market supply, as per Coingape.
Specifically, regarding this matter, the suggestion to destroy one percent of all transactions involving Shiba Inu tokens was recently presented. This endeavor was conducted with the specific intention of obtaining support from Binance and Coinbase, two well-known cryptocurrency exchanges worldwide.
Meanwhile, the Shiba Army disclosed that this decision follows a recent incident that was very similar to the one that occurred. Binance increased the Terra Luna token burn, which resulted in the destruction of an incredible quantity of LUNC. This seems to have triggered the new token burn initiative that the Shiba Army has been working on.
In addition, it is important to point out that the community’s very own burn mechanism is still contributing to the destruction of SHIB in the background. According to a report by CoinGape Media, the burn rate of the meme coin increased by more than 500% today.
Over the previous day, Shiba Inu has been trading in the red, indicating that it is beginning to pull back.
The price of SHIB plummets
When this article was written, the price of SHIB had decreased by 4.82%, trading at $0.00001782. It was determined that the lowest point of the coin‘s 24-hour trading range was $0.00001751, and the highest point was $0.00001879.
The data from Coinglass indicated that the market had a mixed mood about the asset. Its open interest (OI) decreased by 7.52% to $33.49 million, while the volume of derivatives increased by 8.34% to $117.26 million. This could cause the instability that SHIB has been experiencing today.
Additionally, the Relative Strength Index (RSI) confirmed the price decline of the meme coin, which was close to 27. This indicates that the market is oversold, which allows buyers to enter the market at a reduced price.
Photo: Microsoft Bing
