The latest SHIB burn rate data has once again sparked bullish sentiment for the well-known dog-themed meme token Shiba Inu. On Thursday, the token's burn rate soared 2200%, with reports suggesting that the price of this asset may rise in the future. For context, recent on-chain indicators have fueled investor optimism, as they expect meme tokens to experience a parabolic rise, primarily considering the ongoing bull market in the entire industry.
SHIB burn rate skyrockets 2200%, delivering a massive blow to supply
According to the official tracker Shibburn's X post on November 21, the SHIB destruction rate soared 2225%, destroying 14.58 million tokens. This massive surge in the destruction rate has severely impacted the circulating supply of the meme token.
According to the data, the total supply at the time of the report is estimated to be 589.26 trillion tokens. It is also worth noting that weekly destruction data indicates that 50.06 million tokens have been destroyed in the past seven days.
Overall, as the supply continues to decrease, the record of large-scale destruction has strengthened market sentiment towards leading dog-themed meme tokens. It is noteworthy that the SHIB destruction mechanism is designed to eliminate the excess market supply of tokens by sending them to empty addresses. In turn, due to the laws of supply and demand, the market sentiment for tokens is bullish, as these tokens in empty addresses can never be used again.
Is a Shiba Inu parabolic rebound on the horizon?
However, despite the surge in the aforementioned destruction rate, the price of Shiba Inu tokens fell 2% during the day, currently at $0.00002386. The 24-hour low and high prices for the token were $0.00002311 and $0.00002478, respectively. Although this weakening trend has raised concerns among investors, it is worth mentioning that the monthly chart shows a 30% increase. This broader bullish trajectory further aligns with the monthly SHIB destruction rate data, as 1.9278 trillion tokens were destroyed this month.
Meanwhile, CoinGape Media's recent price analysis of SHIB has also increased market optimism for the token. The price prediction for this cryptocurrency highlights key reasons why investors should not sell the token, especially in the broader meme coin bull market.
Additionally, it is worth noting that recent on-chain data suggests that the meme industry is expected to rise further. This report has also sparked optimism regarding the continued rise of top meme coins like SHIB, DOGE, and PEPE. Notably, meme coins like PEPE and DOGE have also seen increases of 90%-169% over the past month.
