The Shiba Inu ecosystem has been under extreme pressure in recent weeks as a wave of controversy dealt a blow to the confidence of investors in the ecosystem.
From speculation that the Shibarium testnet chain is the same as Rinia’s, to BitBoy accusing Shytoshi Kusama as being Sam Bankman-Fried, fear, uncertainty, and doubt about the ecosystem worsened.
However, investors seem thrilled about the recent release of the Shibarium testnet called PuppyNet. This overcame the FUD surrounding the ecosystem, showing investors that SHIB is resilient even with the odds stacked against them.
However, the confidence seemed to be shaken with CoinGecko showing SHIB shedding more than 6% in the weekly timeframe.
Burn Rate Falls By Nearly 70% This Week
The burn rate for Shiba Inu has been in decline following the token’s price drop in the past couple of weeks. ShibBurn, a dedicated Twitter account for tracking the burn rate of SHIB, recently took note of a 70% decline in burn rate in the weekly timeframe. This already recovered to a general decline of 63%, but it remains a problem in the long term.
HOURLY SHIB UPDATE$SHIB Price: $0.0000105 (1hr -0.26% ▼ | 24hr -0.67% ▼ ) Market Cap: $6,204,903,177 (-0.52% ▼) Total Supply: 589,608,944,526,096
TOKENS BURNT Past 24Hrs: 36,808,721 (1107% ▲) Past 7 Days: 856,350,309 (-63.42% ▼)
— Shibburn (@shibburn) March 27, 2023
This followed the FUD surrounding the ecosystem which worsened with the recent accusations around Shibarium and Shytoshi. Despite this, the Shiba Inu community still seems bullish on Shibarium with Shytoshi reassuring the community.
Woof
Facts: THOUSANDS OF PROJECTS JOINING #Shibarium WILL BURN $SHIB
$SHIB #SHIB #SHIBA #ShibaInu #SHI barium #SHIBARMY #ShibaArmy #SHIBARMYSTRONG
pic.twitter.com/WxDPEvKOp8
— SHIB Bezos (@BezosCrypto) March 27, 2023
At $0.00001055, Should Shiba Inu Investors Worry?
As of writing, the token is currently trading at a very narrow range. If the token breaks through $0.00001077, SHIB can target $0.00001192 with confidence. Investors and traders can also enjoy the low correlation with the major currencies which is currently stagnant right now.
However, investors should also take note of the macroeconomic developments that are currently affecting the broader financial market.
The recent interest rate hike by the US Federal Reserve would affect sentiment surrounding financial assets, especially cryptocurrencies like SHIB as they are riskier than traditional financial instruments.
If the crypto market reacts negatively to the recent interest rate hike in the coming weeks, we might see pain come to SHIB. However, the recent speculation around a possible collaboration with Paramount Pictures should pump the price in a couple of days.
In the meantime, Shiba Inu investors and traders should be confident in buying SHIB as it currently shows a minimal possibility of a downside with a higher likelihood of an explosive upside.
-Featured image from Unsplash