TL;DR
- SHIB’s burn rate explosion in a single day has sparked renewed hopes that the meme coin could post substantial gains in the short term.
- However, the decreased activity on Shibarium and the recent asset flow toward exchanges suggest the bears are not done yet.
Millions of SHIB Tokens in Flames
The second-largest meme coin in terms of market capitalization has retraced by 3% in the past week and currently trades at around $0.00001223 (per CoinGecko’s data).
However, data shows that the burn rate has skyrocketed by over 200,000% in the last 24 hours, resulting in roughly 4.5 million SHIB tokens sent to a null address. While the USD equivalent of the destroyed stash is negligible, continuous burning efforts will make the asset scarcer and could positively impact its valuation (should demand not diminish).
Since introducing the program, the team and the community have burned approximately 410.75 trillion tokens, leaving 584.68 trillion in circulation.
Some analysts on X continue making bullish predictions despite SHIB’s negative performance as of late. Mark.eth is among the examples, arguing that Shiba Inu can “make you rich” like no other altcoin. For their part, CryptoELITES envisioned a whopping 17x increase to a new all-time high of $0.00023.
Important indicators, on the other hand, hint that the correction might intensify in the short term. Daily transactions processed on the layer-2 scaling solution Shibarium have plummeted to monthly lows, showcasing decreased user engagement in the ecosystem.
In addition, Shiba Inu’s exchange netflow has been predominantly positive in the last week. This means that investors have shifted from self-custody methods toward centralized platforms, which increases the immediate selling pressure.
Interest is Low, but Is That a Bullish Sign?
When examining SHIB’s performance and trying to predict its future price movement, it is always helpful to observe the overall interest in the asset. According to Google Trends, searches involving the meme coin in the past several months are far below the record high at the end of 2021 and the local peak in March last year.
While this may sound like another bearish element, high retail interest typically comes late in the bull cycle when the price is already booming. That said, the current condition might be interpreted as a sign indicating there’s more room for growth.
