Shiba Inu (SHIB) price momentum remains choppy as ShibaSwap introduces token burn

Shiba Inu, Shiba Inu (SHIB) price momentum remains choppy as ShibaSwap introduces token burn
“Gabi the puppy” by twid is licensed under CC BY-SA 2.0

BELGIUM (CoinChapter.com) — The past few days have been interesting for the Shiba Inu (SHIB) price followers. While the market is going through a much-expected correction after that surge, the community remains hopeful. The addition of SHIB token burning to ShibaSwap remains an active talking point.

Also read: Shiba Inu coin is down almost 84% from its all-time high; what’s next?

The Shiba Inu (SHIB) Price Surge & Correction

The majority of crypto markets remain in a semi-bullish spell after suffering weeks of bearish momentum. As a result, some markets will perk up quickly and then face a correction to negate most of those gains until the dust settles. That trend is more likely to affect alternative cryptocurrency markets, such as Shiba INU (SHIB). Although many people still see this as a meme currency, the developers work hard to turn it more. 

Shiba Inu, Shiba Inu (SHIB) price momentum remains choppy as ShibaSwap introduces token burn
SHIB/USDT chart on Binance via TradingView.com

The price chart for SHIB confirms there has been a lot of recent excitement for this altcoin. However, the current market correction is rather steep, albeit not unusual or unexpected. Most markets have turned slightly bearish in the past few hours, and SHIB will not escape that trend. The Shiba INU (SHIB) value rose from $0.00000615 to $0.0000082 quickly; thus, a retrace is always in the cards. Finding a new support level is crucial but may take a while.

Why Did The Price Go Up?

In the cryptocurrency industry, there are many reasons why a project’s price will go up and down at any given moment.

The overarching market momentum is one contributing factor, but every project operates individually. For example, for Shiba Inu (SHIB), the upward price momentum stems from recent changes to ShibaSwap. As a result, the Shiba Inu team confirmed the ShibaSwap DEX would introduce a SHIB token burn to reduce the supply of both SHIB and LEASH tokens.

Furthermore, ShibaSwap is now home to a few more liquidity pools, confirming overall protocol growth.

Of the new pools, Perlin has burned $25,000 in SHIB and LEASH and introduces their native token as a bi-weekly reward for liquidity providers.

For Ryoshi, the team provides liquidity exclusively through ShibaSwap, and 1% of every transaction will be burned. Both changes make the DEX more robust, although the SHIB price momentum was short-lived following these announcements.

Speaking of ShibaSwap, the platform notes over $34 million in daily trading volume.

That may not seem much compared to Uniswap or PancakeSwap, but there is a genuine interest in this trading platform. Its top pairs are Shiba Inu, Doge Killer, WETH, USDC, and DAI, the usual suspects. For the DEX to succeed, it needs to keep introducing more liquidity and trading volume.

Those two new pools may help move things along, but there is still much work ahead.

On Reddit, some Shiba Inu community members acknowledge the SHIB price will remain in choppy waters for a while to come.

The poster mentions the Fibonacci sequence and how SHIB’s price floor has risen, although it is too early to deem it a new support level. Moreover, the user expects SHIB to remain in a “growth period” of sorts, despite anticipating market volatility over the coming days. A rational look at the volatile nature of crypto markets and why positive developments are rarely a price indicator.

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Shiba Inu, Shiba Inu (SHIB) price momentum remains choppy as ShibaSwap introduces token burn

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