Shiba Inu (SHIB), the popular dog-themed meme coin, has witnessed a dramatic 2200% surge in its burn rate, sparking optimism for a potential parabolic rally. Recent on-chain data and the broader cryptocurrency bull market have bolstered investor confidence in the token’s future trajectory.
Massive SHIB Burn Hits Supply
Data from Shibburn, an official tracker, revealed that on November 21, the SHIB burn rate soared by 2225%, resulting in the destruction of 14.58 million tokens within a single day. Over the past week, a total of 50.06 million SHIB tokens have been burned. These burns represent a significant reduction in the coin’s circulating supply, which currently stands at 589.26 trillion tokens.
The SHIB burn mechanism works by sending tokens to an inaccessible null address, permanently removing them from circulation. This reduction in supply is designed to align with the economic principle of supply and demand, potentially driving up SHIB’s value as availability diminishes.
Market Reaction and Price Performance
Despite the notable burn rate, SHIB’s price saw a 2% dip on Thursday, trading at $0.00002386. Its 24-hour range fluctuated between $0.00002311 and $0.00002478. However, on a broader scale, SHIB has recorded a 30% gain over the past month, supported by a significant 192.78 trillion tokens burned during the same period.
Bullish Sentiment for Meme Coins
The SHIB burn rate surge has added to positive sentiment surrounding meme coins in general. Alongside SHIB, top performers like Dogecoin (DOGE) and PEPE have rallied 90%-169% over the past month, reflecting growing interest in the meme coin sector amid the ongoing crypto bull market.
Analysts remain optimistic about SHIB’s long-term potential. Recent forecasts suggest that SHIB could capitalize on its supply reduction and broader market momentum, encouraging investors to hold the token despite short-term price volatility.
Outlook for a Parabolic Rally
While SHIB’s price has faced intraday challenges, its significant burn activity and strong market sentiment could pave the way for a parabolic rally. With meme coins continuing to gain traction, SHIB stands out as a key contender poised for further growth in the current bullish environment.
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