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One of the most favorite meme-based cryptocurrencies, Shiba Inu, has recently shown a drastic increase in its market valuation, rising more than 17% in a single day while it rose 30% over the past week, marking the highest price reached by the coin since April 1, 2024. Currently, Shiba Inu (SHIB) is trading at about $0.00003059.
Shiba Inu Burn Rate Skyrockets by 7,418%
The major driver of this huge rise in the price is due to the burn rate of the Shiba Inu coin, which hiked up at 7,418% in a week. According to estimates, over 2 billion SHIB tokens have been eliminated permanently from circulation, reducing the total circulation to about 589.26 trillion tokens.
This increase in the burn rate has increased excitement among investors, as burning tokens are meant to restrict supply and push prices to rise.
Token burns constitute a method through which cryptocurrencies deliberately reduce supply with the intention of increasing demand, effectively leading to upward price movement. Shiba Inu, which started with an extraordinarily large total supply of 1 quadrillion tokens, must engage in continuous and significant burning efforts for viable long-term price potential. The community’s belief in the measure is reflected in their goal to take most of the SHIB tokens out of circulation.
The fiendish Shibburn platform said that about 1.937 billion SHIB tokens were burnt just last week and burnt a further 386.5 million within a preceding 24-hour period leading up to this eruption. This aggressive burning strategy is part of the Shiba Inu community’s overall plan to reduce supply while increasing demand.
Analysts’ Predictions for Shiba Inu Prices
Currently, analysts are following the market actions of Shiba Inu to determine whether there will be price boosts or not. Analyst Ali Martinez said that SHIB can reach $0.000037, which will then imply a possible increase of 54% on the current levels. Another one, analyst Javon Marks, said, “SHIB can reach much higher, around $0.000081,” which is an indication of a more than 200% increase.
Whales Show Confidence: Massive SHIB Accumulation
Investor sentiment seems to be optimistic, especially among large holders, so-called ‘whales.’ As per IntoTheBlock reports, it was on November 21 that net inflows from large-holders surged by 256%. Interestingly, whales accumulated about 393.48 billion SHIB tokens, equivalent to more than $9.8 million46. Accumulation activity shows confidence in the future price of Shiba Inu.
The price increase for Shiba Inu seems to go with the recent trends in the cryptocurrency market, especially regarding meme coins. Other dog-themed cryptocurrencies, including Dogecoin, have also seen price increases, which suggests that there was renewed interest in these cryptocurrencies, especially driven by social media trends and community engagement.
However, there are still uncertainties about the current price in the long run. Future occurrences in the Shiba Inu ecosystem-in the form of updates to its layer-2 blockchain dubbed Shibarium and various community projects- will greatly determine the token’s prospects.
Shiba Inu’s Path to Becoming a Seasoned Player
In fact, the Shiba Inu community has been working towards developing the use of SHIB into something more than speculation. As lead developer Shytoshi Kusama stated, burning tokens is necessary for reduction, but real-world use cases for SHIB are equally important for drawing real interest and demand.
Shiba Inu’s price increase is attributable to increased burn and recently increased whale movement. But keep your fingers crossed, as the crypto market is volatile. Burning supply and developing a utility for the currency will be crucial for doing so in the speculative landscape that lies ahead.
As Shiba Inu matures from meme coin to a more seasoned player in the space, it will be able to maintain its momentum based on either the market conditions or the performance of community initiatives enhancing utility and reducing supply through strategic burns.
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