You may have heard of Shiba Inu, the cute dog that inspired the cryptocurrency called SHIB. It is so popular that it could even become the new Bitcoin, at least according to some enthusiastic investors.

But despite the increase in the number of disabled SHIBs in recent weeks, the price has fallen short of community expectations.
Less Shiba Inu should justify a higher price
Shiba Inu makers have decided they want to phase out coins. The idea is that the fewer coins there are, the scarcer it becomes. If demand stays the same or increases slightly, the price should increase. That’s the theory. Excercise? A feather.
But let’s start with the good news. In March, 6.78 billion SHIB tokens were withdrawn in 540 transactions. This is a significant increase compared to previous months. These coins are sent to a “dead” address.
First Bitcoin, then Ethereum, then Shiba Inu
But why is the SHIB price lagging? Shytoshi Kusama, SHIB’s lead developer, made some interesting comments on this. First, he analyzed the state of the cryptocurrency market and explained that SHIB is an interesting investment for swing traders.
A swing trader is an investor who focuses on profiting from short-term price fluctuations in financial markets. Swing traders typically hold their positions for a few days at most and try to make a profit by trading short-term trends and market movements.

Second, he mentions the “classic” cycle from Bitcoin to Ethereum to Altcoins, which a number of crypto investors are currently waiting for.
Insufficient Shiba Inu has been phased out
But the main point Kusama made was that not enough coins have been withdrawn from circulation to affect the price of the Shiba Inu.
The developer of Shiba Inu is probably alluding to the fact that if you put the number of coins being dropped in absolute terms, it looks impressive. It is different if it is expressed in dollars, for example. Then the numbers are suddenly a lot less impressive.
For example, 6.78 billion Shiba Inu tokens were withdrawn from circulation in March, but that is only worth $76,000. And even if you look at the relative numbers, it’s disappointing. The number of coins withdrawn from circulation in March is only 0.00118% of all coins in circulation.
What can you use the Shiba Inu for?
His final argument is that Shiba Inu needs more use cases. In short, more needs to be done than just retiring the SHIB for the price to rise. The ecosystem needs to grow and new technologies and tools need to be introduced to increase adoption.
Source: Btc Direct

Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.