Analyst identifies biggest problem with Shiba Inu burns

Shiba Inu is trading at the lowest prices in 12 months.

It's logical to imagine that Shiba Inu burns should increase as the price drops. Why is that? Because you can burn twice as many Shiba Inu tokens as you could in April for the same dollar value. 

So why was Shiba Inu burning in September -93% lower than in April? 

Just 1.75 billion SHIB tokens were sent to burn addresses in September, compared with 26.117 billion SHIB tokens sent to burn addresses in April. In April the Shiba Inu price was around $0.000025 while in September the Shiba Inu price was around $0.000012.

Shiba Inu burns must take advantage of bear market prices 

The monthly burn charts from Shiba Burn Tracker make one thing clear: Shiba Inu investors are more likely to burn SHIB when sentiment is bullish.

More than 30 billion Shiba Inu tokens were burned in May this year as the burn portal launched. But as prices kept dropping and the burn portal failed to deliver rewards, the amount of SHIB burned each month since has continued to fall.

Frustratingly for Shiba Inu holders, the bear market prices make it easier to burn more Shiba Inu than ever.

The Shiba Inu tokens burned in September had a dollar value around $20,000 – while in May when sentiment was bullish the Shiba Inu burned had a dollar value over $250,000.

How do Shiba Inu bear market burns hold up against other projects?

Shiba Inu is far from the only project to burn tokens. 

EverGrow is a leading hyper-deflationary cryptocurrency. The project burned through 2.5% of its initial supply in the past year, while Shiba Inu burned around 0.01% of its initial supply in the past year. 

How does EverGrow work?EverGrow collects 2% of each buy or sell to buyback and burn EverGrow tokens. It means that EverGrow token burns never stop happening regardless of whether prices are high or prices are low. 

EverGrow launched an NFT marketplace – LunaSky – in September and became the first crypto ecosystem to give 100% of profits towards buying back and burning EGC tokens. EverGrow also released 15,000 NFTs with 100% of sales going towards buyback and burn. All in all it raised over $250,000 inside a month of operation.

You can read more about EverGrow tokenomics on the website.

That's equivalent to the amount Shiba Inu holders burned back in May – except achieved in a bear market, and for a project with a market cap of just $50 million compared to SHIB's $5.5 billion.

EverGrow burning will go live at the end of October, and has the potential to create 60 days of consecutive green candles.

This would be the first time a crypto has done this. It also could give inspiration for the Shiba Inu looking to find more revenue to burn SHIB after Shiba Eternity announced just 5% of its profits would go towards burning.