The Shiba Inu started the year on a downward trend, recording an 11% drop in its price over the past week.
However, rumors suggest that a major event could lead to a major shift in her fortunes.
SHIB prices are struggling despite token burning rumors
The Shiba Inu’s lackluster price action has continued despite notable steps such as the introduction of the Tier 2 Shibarium. However, optimism surrounds the possibility of higher prices this month. Rumors of a large symbolic burning have spurred this on.
This speculation emerged after a post by Ragnar Shib, who suggested that “9.25 trillion SHIB could be burned this month.” Cryptocurrency enthusiasts believe that such a large token burn could significantly reduce the supply of SHIB, which could boost its value.
However, the actual burning rate depends on the activity of the Shiba Inu’s ecosystem. Daily transactions on the network dwindled, falling to 5.69 million from an average peak of about 8 million recorded in December. In the past seven days, only 206.6 million SHIB tokens were burned, which is far from achieving the target of 9.25 trillion per month.
Read more: 7 cryptocurrencies you should have in your wallet before the next bull run
Pricing data from BeInCrypto shows that SHIB has seen an 11% price decline since the beginning of the year, along with a roughly 5% decline in the last 30 days. The recent price performance has knocked Shiba Inu out of the top 15 cryptocurrencies by market cap, trading 89% below its all-time high.
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