Shiba Inu Burn Rate Soars 600%, What’s Next for SHIB?
SHIB burn rate surged over 600% on January 22, with 3.24 million SHIB tokens permanently removed from circulation.
The token’s price sees a modest 2% increase, trading at $0.00002.
Analysts predict potential price targets for SHIB at $0.00003340 and $0.0000455 in the near term.
The Shiba Inu (SHIB) community witnessed a dramatic surge in its burn rate on January 22, climbing over 600% and signaling a renewed wave of optimism for the meme token. According to from Shibburn, approximately 3.24 million SHIB tokens were sent to a null address, permanently removing them from circulation. This supply reduction comes under Shiba Inu team’s ongoing efforts to increase the token’s value.
mechanism, designed to decrease token availability, is a critical factor in driving the asset’s price upward. Traders and investors are now speculating about a possible price breakout, especially as the broader cryptocurrency market shows signs of recovery.
SHIB Price Trajectory
After a waning action on January 21, SHIB is currently trading at $0.00002, reflecting a modest 2% gain over the past 24 hours. This surge aligns with the overall memecoin market recovery, currently seeing a 6% uptick in the market cap.
SHIB boasts a market capitalization of $12 billion, retaining its position as the second-largest meme coin and the 17th-largest cryptocurrency overall. The token has seen a 125% growth in its value in the past year.
It is important to note that while reduced supply is a bullish indicator, it alone may not drive long-term price appreciation without accompanying increases in demand and trading activity. The current $593 million 24-hour trading volume for SHIB is significantly low compared to its rivals. Notably, the largest meme coin, Dogecoin , and the third-largest meme token, TRUMP , have a trading volume of $8.5 billion and $20 billion, respectively.
Moreover, IntotheBlock shows that the number of large SHIB transactions has also reduced significantly since the year started.
From a technical perspective, SHIB’s Relative Strength Index (RSI) sits at 42, indicating neutral market conditions with no clear overbought or oversold signals. Meanwhile, the Accumulation/Distribution (A/D) chart suggests increased investor interest since November, although short-term fluctuations persist. A rise in trading volume could trigger upward momentum in the A/D, leading to price growth.
What’s Next?
Shiba Inu’s lead developer, Shytoshi Kusama, recently hinted at exciting developments on the horizon for the token. His recent statement about a “big week” for the SHIB ecosystem has stoked speculation of new advancements that could further strengthen market confidence.
For the near future, several analysts on X have set potential price targets at $0.00003340 and $0.0000455. Prominent crypto trader ‘VipRoseTr’ has expressed confidence in SHIB’s near-term potential, predicting a price climb to $0.00004029.