• SHIB burn rate surge boosts optimism despite recent price decline.
• Shiba Inu’s supply reduction could trigger future price gains.

Shiba Inu (SHIB), one of the most prominent memecoins in the crypto space, is currently experiencing a bearish phase, despite a notable surge in its burn rate. On December 8, SHIB reached a nine-month high of $0.00003343, catching the attention of investors. However, in a sharp reversal, the altcoin has since plummeted to $0.00002511, reflecting an 11% drop in the 24-hour timeline. Despite the decline, trading volume has surged by 105%, indicating heightened market activity.

Meanwhile, the increase in SHIB’s burn rate is a key factor driving investor interest. On December 5, data from Shibburn revealed a remarkable 1000% surge in the token’s burn rate, suggesting that the circulating supply of SHIB had been significantly reduced. In total, 51.76 million SHIB tokens were sent to a null address, effectively removing them from circulation.

Additionally, the weekly burn data indicates that a total of 2.44 billion SHIB tokens were burned, further shrinking the total circulating supply to approximately 589.25 trillion SHIB. The impact of these burns has reinforced the supply-and-demand narrative, contributing to growing optimism surrounding the coin.

SHIB Potential Bullish Breakout?

Despite the optimistic fundamentals, SHIB’s price has experienced a 15% intraday drop, now sitting at $0.00002646. The 24-hour low and high were recorded at $0.00002511 and $0.00003141, respectively. However, the asset has seen a 16% increase over the past week, suggesting potential for future gains.


SHIB Price Chart, Source: Sanbase

Analysts suggest that SHIB’s price could see a further 100% increase, citing that large holders control 73% of the token’s supply. This concentration of wealth indicates that it may experience significant price movement soon. As the token navigates a bearish phase, the burn rate surge and strong on-chain metrics point to a potentially bullish outlook ahead. The daily RSI is at 63, suggesting that it is reaching an overbought situation.

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