According to a post on X by the Shiba Arab Army, Shiba Inu is considering a new token burn initiative on Binance and Coinbase.
Despite the recent bearish trend, this news has generated substantial optimism regarding the future price movements of Shiba Inu. Therefore, we should examine this new SHIB fire initiative in greater detail.
What is the SHIB Burn Initiative?
In the post on X from the Shiba Arab Army on June 21, the community emphasized token fires’ significant impact on cryptocurrency’s market dynamics. The post reaffirmed that scarcity is first and foremost generated by reducing a coin’s market supply.
This is the reason for implementing the proposal to burn 1% of all transactions involving Shiba Inu tokens today. The explicit objective of this initiative was to secure the backing of Binance and Coinbase, two globally recognized cryptocurrency exchanges.
In the interim, the Shiba Army also disclosed that this decision is reminiscent of a recent incident. Binance increased the Terra Luna token burn, destroying massive quantities of LUNC. This has initiated the Shiba Army’s latest token fire initiative.
It is also important to note that the community’s fire mechanism still destroys SHIB in the background. CoinGape Media reported that the combustion rate of the meme coin increased by more than 500% today.
On the other hand, Shiba Inu has been trading in the red, indicating a potential decline in the past day.
Price of SHIB Falls
At the time of writing, the price of SHIB decreased by 4.82%, trading at $0.00001782. $0.00001751 and $0.00001879 were the evaluated 24-hour lows and highs of the coin, respectively.
Coinglass data suggested that the asset was experiencing a conflicting market sentiment, as its open interest (OI) decreased by 7.52% to $33.49 million, and derivatives volume increased by 8.34% to $117.26 million. This could be the cause of the volatility that is currently taking place in SHIB.
In addition, the RSI, which is currently at approximately 27, further substantiated the meme coin’s price decline. This suggests that the market is oversold, which could allow investors to enter at a low price.
