The burn rate of Shiba Inu ($SHIB ) tokens has surged by 2200%, sparking optimism for a potential parabolic price rally. This surge in activity reflects bullish on-chain metrics and growing investor confidence, supported by an overall positive sentiment in the cryptocurrency market.
SHIB Burn Rate Spikes, Reducing Circulating Supply
Recent data from the Shibburn tracker reveals a 2225% jump in SHIB’s burn rate on November 21, with 14.58 million tokens permanently removed from circulation in a single day. This significant reduction in supply supports the token's market value by aligning with the economic principle of supply and demand.
Weekly burn data highlights a total of 50.06 million tokens destroyed over the past seven days. As of the report, SHIB’s total supply was estimated at 589.26 trillion tokens. The SHIB burning mechanism, which involves sending tokens to a zero address, ensures a gradual reduction in market supply and sets the stage for potential price appreciation.
Parabolic Rally Ahead?
Despite the dramatic burn rate increase, SHIB's price experienced a slight 2% decline over the past day, trading at $0.00002386 with daily lows and highs ranging between $0.00002311 and $0.00002478. While this short-term price dip might raise concerns, the monthly chart shows a 30% gain, underscoring a broader bullish trend.
Notably, 192.78 billion tokens have been burned over the past month, further strengthening the case for long-term price growth. Analysts suggest that investors should maintain their positions as the meme coin market remains in a bullish phase, bolstered by a steady reduction in SHIB’s circulating supply.
Meme Coin Market Momentum
The broader meme coin market, including SHIB, DOGE, and PEPE, has shown remarkable growth, with some coins experiencing price surges of 90% to 169% in the past month. This momentum reflects increasing optimism for continued rallies within the sector.
Conclusion
The recent surge in SHIB’s burn rate has amplified market sentiment, raising the potential for a sharp price increase. With the meme coin market gaining traction, Shiba Inu remains a standout candidate for sustained growth. Investors are advised to monitor key metrics and market developments closely as the dynamic meme coin sector unfolds.