The dog-themed meme coin Shiba Inu has witnessed a significant rally, surging by 17.7% in a single day and 30% over the past week. Multiple media reports attribute this upward momentum to a massive spike in the burn rate, which exceeded 7,400%, along with a reduction in supply.
On Sunday, data from Shiburn showed a 984.26% increase in Shiba Inu token burns within the past seven days. As a result, the circulating supply now stands at approximately 589.2 trillion. Additionally, Shibarium, its layer-2 blockchain, has processed over 541 million transactions in recent months. Observers note that this network growth is favorable for SHIB, as transaction fees collected in BONE tokens are partly converted into SHIB and then burned, further decreasing the supply.
BONE, the governance token of the Shiba Inu ecosystem, plays a crucial role. It enables holders to take part in decision-making through the Doggy DAO and is essential for paying gas fees and incentivizing validators and delegators on the Shibarium Layer 2 blockchain, highlighting Shiba Inu’s evolution from a simple meme token to a more comprehensive blockchain project with decentralized governance and utility.
Another positive sign is the whale accumulation trend. According to IntoTheBlock, on Nov. 21, the netflow of large holders surged by 256%. Whales accumulated 393.48 billion SHIB tokens worth over $9.8 million, in contrast to the $6 million sell-off the day before.
Analysts have also made predictions about SHIB’s price. Ali Martinez forecasted on Nov. 21 via X that SHIB could climb to $0.000037, which would be 54% higher than its then-current price. Javon Marks anticipated a potential rally to $0.000081, representing an increase of over 200%.
Moreover, Bitcoin’s (BTC) expected surge to $100,000 might also fuel the Shiba Inu rally.
Shiba Inu originated as an experiment in community-driven cryptocurrency, inspired by Dogecoin (DOGE) and branded as the “Dogecoin Killer.” Its creator, “Ryoshi,” remains anonymous and has emphasized that the project belongs to the community, relying on the “Shib Army” for growth and adoption. However, whether the current momentum of Shiba Inu will continue remains uncertain.
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