The Shiba Inu (SHIB) cryptocurrency has once again captured investor attention, with its burn rate skyrocketing by over 1000% in recent days. This significant increase in burned tokens has led to a reduction in the circulating supply, potentially driving up the price of the dog-themed meme coin.
A Burning Desire for Growth
According to data from Shibburn, a staggering 51.76 million SHIB tokens were sent to a burn address on Tuesday, effectively removing them from circulation. This massive burn event, coupled with a weekly burn of 2.44 billion tokens, has significantly reduced the total supply of SHIB to 589.25 trillion.
As the supply of SHIB dwindles, the laws of supply and demand suggest that the price could increase. This, combined with the growing popularity of Shibarium, the layer-2 network built on Ethereum, has ignited optimism among investors. Shibarium has already attracted over 2 million wallet addresses, indicating a growing and active community.
Bullish Outlook for SHIB
While the recent intraday price action of SHIB has been somewhat volatile, with a 15% decline, the weekly chart paints a more positive picture, showing a 16% increase. This suggests that the long-term trend for SHIB remains bullish.
Additionally, on-chain analysis from CoinGape indicates that large holders continue to accumulate SHIB, with a concentration of 73%. This suggests that there is strong institutional interest in the token, which could further fuel price appreciation.
The combination of a surging burn rate, a growing ecosystem, and strong institutional interest has created a bullish outlook for Shiba Inu. While short-term price fluctuations are to be expected, the long-term potential for SHIB remains significant. Investors who are bullish on the future of meme coins and cryptocurrency, in general, may want to keep an eye on SHIB.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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