Shiba Inu has attracted significant attention in the crypto community. Its burn rate has seen a significant increase, sparking curiosity and discussion about the token’s future trajectory. Notably, the official Shibburn tracker on X (formerly Twitter) reported a 464% increase in weekly burn rate, resulting in the destruction of over 624.5 million SHIB tokens in just seven days. This rapid decline in circulating supply has fueled market optimism, as SHIB’s deflationary mechanism remains a key driver of potential price movements.

Large supply reduction

Furthermore, the significant token burn has directly impacted the total circulating supply of Shiba Inu, which currently stands at 589.262 trillion coins. This mechanism works on a simple economic principle: as supply decreases, scarcity increases, potentially driving up value over time.

Market watchers have therefore linked the increased burn activity to broader bullish momentum. Shiba Inu has seen notable price action over the past week, with the token up nearly 6% on the day. According to the latest data, SHIB is trading at $0.0000251, with a daily low of $0.00002319 and a high of $0.00002596.

Broader market fever

Furthermore, the current enthusiasm around SHIB is part of a larger trend in the cryptocurrency space. Meme coins, including Dogecoin, Pepe Coin, and Dogwifhat, have also recorded impressive weekly gains, ranging from 61% to 101%. This increase comes amid a general bullish phase that has gripped the market in the last quarter of the year.

Shiba Inu lead developer Shytoshi Kusama has expressed optimism about X, reinforcing the community's excitement. In response to the latest developments, Kusama posted a celebratory message, adding to the positive sentiment surrounding SHIB.

Whales and Potential Profits

Furthermore, a recent report highlighted how a major crypto whale capitalized on SHIB’s recent bullish moves. The investor reportedly made millions of dollars in profits, highlighting the significant profit potential. This story, combined with the skyrocketing burn rate, has bolstered confidence in Shiba Inu’s prospects.

Additionally, price analysis has shown that SHIB could repeat historical patterns that hint at a potential parabolic price increase in the near future. Enthusiasts are now closely watching how the token performs as the year progresses, especially with increasing signs of a sustained uptrend.