Shiba Inu, a popular meme coin, has recently experienced a significant increase in its burn rate, with a staggering 450% surge in the past 24 hours. This spike has resulted in nearly 50 million tokens being sent to a null address, ultimately reducing the circulating supply of SHIB. While the USD equivalent of this burn may seem insignificant, continuous efforts in this regard could potentially have a positive impact on the coin’s price. Additionally, data indicates that over 41% of SHIB’s total supply has already been destroyed, leading to scarcity which may drive up the value of the meme coin, provided that demand remains stable or increases.
Shiba Inu has also witnessed a surge in whale activity, with aggregated daily transaction volumes exceeding $100,000 reaching nearly $900 million. This represents a substantial 1,800% increase compared to previous figures observed just a few weeks ago. The increased whale activity suggests growing interest and possibly greater investment in Shiba Inu, which could further influence its price movement in the future.
Shibarium Metrics on the Rise
In addition to the increased burn rate and whale activity, certain metrics related to Shibarium, a layer-2 scaling solution for Shiba Inu, have also shown positive growth trends. Metrics such as active accounts, new transactions, and verified contract growth have all been on the rise in recent days. Shibarium, which was introduced less than a year ago, aims to enhance the development of Shiba Inu by reducing transaction costs, improving speed, and increasing scalability. The positive growth in Shibarium metrics indicates a growing ecosystem for the meme coin, which could potentially attract more investors and users in the future.
Price Performance and Investor Sentiment
Despite experiencing a daily price correction of around 7%, Shiba Inu’s valuation remains relatively strong on a weekly and yearly basis. The price of SHIB is up by an impressive 125% over the past year, benefiting many investors who are currently sitting on paper profits. In fact, 52% of SHIB holders are in profit, a stark improvement compared to the situation in September 2023 when almost 90% of investors were in the red.
Analysts remain optimistic about the future price potential of Shiba Inu, with some predicting further price increases if critical resistance levels are surpassed. For instance, earlier this year, Rekt Capital forecasted that SHIB’s valuation could skyrocket by triple digits if it exceeds the critical resistance level of $0.00002741. With recent bullish indicators and positive growth trends in key metrics, it will be interesting to see how Shiba Inu’s price performs in the coming days and whether a price rally will follow the resurgence of these positive signs.
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