The Shiba Inu (SHIB) burn rate soared by over 7,000% on July 30 amid increased activity around the Shibarium network.
According to Shibburn, 2,377,131 SHIB tokens had been sent to burn wallet addresses in the last 24 hours. While the burn rate is cooling off, removing this large number of tokens from the circulating supply is a net positive for SHIB investors and the entire ecosystem, as it makes the meme coin deflationary.
The increasing burn rate points to rising activity on the Shibarium blockchain, which recently reached a landmark of 6 million blocks.
According to Shibarium’s marketer, Lucie on X, the network hit this key milestone as the total number of transactions on the chain reached 416 million.
Huge congratulations to all Shibizens on #Shibarium for hitting 6 million blocks! #TreatYourself! pic.twitter.com/VDnpt6ClaP
— 𝐋𝐔𝐂𝐈𝐄 (@LucieSHIB) July 29, 2024
Shibarium’s growth is fuelled by blockchain developments such as the Web3 upgrade of the Shiba Eternity Web3 game.
Analyst Says SHIB Appears Ready For A 120% Rally
Shiba Inu has followed the downtrend across the broader cryptocurrency market in the last 24 hours, trading at $0.00001617 at the time of writing after a 2.4% drop in 24 hours.
A look at SHIB’s price action on the six-hour chart shows that despite the short-term price drop, the coin has created higher highs, showing upward momentum. With the Relative Strength Index (RSI) at 54, the meme coin has room for further growth as selling pressure is yet to intensify and trigger a bearish sentiment.
The positive sentiment around SHIB is further confirmed by the Moving Average Convergence Divergence (MACD) line. The MACD line has crossed above the signal line, showing the likelihood of a trend reversal and further gains.
According to analyst Jonathan Carter on X, Shiba Inu was on the verge of a major rally. The analyst stated that SHIB formed a descending channel, pointing towards a potential trend flip.
If SHIB breaks above this channel and smashes past the 50-day Moving Average (MA), the price could rally 120% to trade at $0.000038. Such a jump could place Shiba Inu on the pathway to a fresh record high.
The positive price performance also comes as analysts predict that SHIB is among the top meme coins with a high conviction rate. This shows that investors firmly believe in Shiba Inu’s performance and success.
