Shiba Inu soars over 17% on heels of burn rate spike

Shiba Inu Meme Coin Surges Amidst Burn Spike and Supply Reduction

Shiba Inu (SHIB), the dog-themed meme coin, has witnessed a significant surge, rising by 17.7% for the day and 30% over the past week. This upward momentum represents the highest point reached since April 1.

Analysts attribute the rally to a massive increase in burn rate (over 7,400%) and a reduced supply. However, the sustainability of this momentum remains uncertain.

Ali Martinez, an analyst, predicts SHIB could climb to $0.000037, a 54% increase. Javon Marks anticipates a potential rally to $0.000081, an increase of over 200%.

Shiba Inu tokens continue to burn. Shiburn data reveals a 984.26% spike in token burns over the past seven days, bringing the circulating supply to approximately 589.2 trillion.

The Shibarium layer-2 blockchain has processed over 541 million transactions in recent months. Experts believe this network growth is positive for SHIB, as transaction fees (collected in BONE tokens) are partially converted into SHIB and burned, further reducing supply.

Whale accumulation is also a factor in SHIB's surge. IntoTheBlock reports a 256% increase in large holder netflow on November 21.

Shiba Inu's transition from a meme token to a broader blockchain project with decentralized governance and utility has also contributed to its popularity.

The anticipated surge in Bitcoin (BTC) to $100,000 could potentially drive the Shiba Inu rally further.

Shiba Inu was created as an experiment in community-driven cryptocurrency, inspired by Dogecoin (DOGE). It emphasizes decentralization and a grassroots approach, relying on its community, the "Shib Army," for growth and adoption.