How does the total burned supply of Shiba Inu affect its price in the digital currency market?
Samarth PandhareDec 25, 2021 · 3 years ago1 answers
What is the relationship between the total burned supply of Shiba Inu and its price in the digital currency market? How does the burning of tokens impact the value of Shiba Inu? Can the total burned supply of Shiba Inu influence its market price significantly?
1 answers
- Dec 25, 2021 · 3 years agoAs an expert from BYDFi, I can say that the total burned supply of Shiba Inu can have a significant impact on its price in the digital currency market. When tokens are burned, it reduces the supply, which can create scarcity and drive up the price. This burning mechanism is designed to reward long-term holders and discourage short-term speculation. By reducing the supply, it can also help to stabilize the price and prevent excessive inflation. However, it's important to consider that the price of Shiba Inu is influenced by various factors, including market demand, overall market conditions, and investor sentiment.
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