Shiba Inu (SHIB), the self-proclaimed “Dogecoin Killer,” is setting tongues wagging with a staggering 3,700% surge in its burn rate over the past 24 hours. This dramatic rise in eliminated SHIB tokens has fueled speculation of a significant price increase in the long run, with some even daring to dream of a price tag of $0.001.

The burn rate refers to the process of permanently removing SHIB tokens from circulation by sending them to a designated, unspendable wallet address. SHIB burns are a regular occurrence, and the logic is simple: with fewer tokens circulating, each remaining SHIB becomes theoretically more valuable, provided demand stays consistent or rises.

Data from Shibburn, a platform dedicated to tracking SHIB burns, reveals that over 300 million SHIB tokens were incinerated in the last day alone. This dramatic increase coincides with heightened activity on Shibarium, a layer-2 blockchain specifically designed for the Shiba Inu ecosystem. According to IntoTheBlock, daily active addresses on Shibarium have jumped by 65%, with large transaction volumes experiencing a staggering 181% rise.

This surge in activity is significant because every transaction on Shibarium burns a portion of SHIB tokens. As Shibarium usage grows, so too will the deflationary pressure on SHIB, potentially propelling its price upwards.

Despite the burn frenzy, SHIB’s current price sits at a relatively stable $0.0000170. Analysts point out that SHIB has exhibited impressive resilience compared to other altcoins, weathering recent market volatility with relative stability. Notably, buy orders have repeatedly thwarted attempts to push the price below the $0.000017 threshold.

Technical indicators like the Relative Strength Index (RSI) currently show a tug-of-war between buyers and sellers. However, a recent dip in RSI below 40, entering oversold territory, could signal an opportunity for bulls.

Interestingly, data from IntoTheBlock suggests a market with a majority (52%) of profitable coin holders. This could translate to less selling pressure moving forward. A key hurdle lies at $0.0000181, a recent resistance level established by a wave of buy orders in late June. If SHIB manages to break past this barrier, it could trigger a significant price rally.

While the $0.001 target might seem like a distant dream, the recent developments surrounding coin burns and Shibarium activity paint an intriguing picture. Only time will tell if the “Dogecoin Killer” can live up to its name and deliver the mega-returns some investors are hoping for.

By Joadin Maina

Beyond the hype, I untangle the web3 revolution, guiding curious minds through the labyrinth of decentralized possibilities.