Shiba Inu Deflationary Pressures Rise As $SHIB Investors Are Looking For Alternatives
Shiba Inu’s ($SHIB) falling burn rate has sent the token spiraling down since March when the $8.5 billion market cap meme coin tested resistance levels of $0.0000380.
At its current price of $0.00001445, Shiba Inu ($SHIB) has lost 59% since March 5, when it posted a high of $0.00003541.
On the other hand, original meme coin Dogecoin ($DOGE), which drew inspiration from the same viral internet meme, dropped 44% since March 5.
In fact, the world’s biggest crypocurrency, Bitcoin ($BTC), has proven itself far more robust than these two competitors. Over the same period, Bitcoin, which was worth $68,187 on March 5, only shed about 11% on its way down to its current price of $60,817.
Shiba Inu’s massive loss in value comes as fewer transactions on the community’s proprietary Ethereum layer 2, Shibarium, have triggered fewer burns. Burns are necessary to maintain Shiba Inu’s value, as with a total supply of one quadrillion, it’s not exactly scarce, unlike Bitcoin, which has 21 million $BTC.
In the last 24 hours, Shiba Inu’s price has rebounded 5%, although its rising relative strength index (RSI) is only 1 point short of 70, which indicates an overbought asset. There will likely be some overnight profit taking to help $SHIB consolidate its current price into the weekend.
Shiba Inu’s current deflationary pressures have seasoned meme coin holders wondering if any promising new projects will be a better store of value. Some exciting projects are so new that you can still buy them at fixed prices in pre-sale, to be in pole position for post-exchange listing gold rushes.
Dubbed crypto’s official Paris Olympics meme coin by degens, one such coin, The Meme Games ($MGMES) has already raised $404,000 for its buy-to-win bonus multiplier,
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