The Shiba Inu (SHIB) community is abuzz with optimism following a remarkable 6750% surge in the coin’s burn rate, as traders and investors set their sights on a long-term price target of $0.01.
Burn Rate Surge Highlights Market Optimism
On October 23, data from Shibburn indicated that nearly 27.1 million SHIB coins were removed from circulation within the past 24 hours, contributing to a significant uptick in the burn rate. This surge translates to a total circulating supply of approximately 589.26 trillion coins. The drastic reduction in supply is fueling optimism among investors, aligning with basic economic principles of supply and demand, which suggest that decreased supply can drive up price, assuming demand remains constant.
In addition to the daily burn, weekly figures reflect a total of roughly 58 million coins taken out of circulation. This ongoing effort to reduce the token’s supply further enhances bullish sentiments in the market.
Ecosystem Developments Bolster Sentiment
The recent spike in the burn rate is not occurring in isolation; it coincides with various developments within the Shiba Inu ecosystem. A report from CoinGape Media highlighted that the token has seen increased activity on its Layer 2 solution, Shibarium, signaling robust growth prospects for the meme coin’s infrastructure. This activity has led many within the community to draw parallels to the impressive rallies experienced by SHIB in 2021.
Price Action and Future Expectations
Despite the optimism surrounding the burn rate and ecosystem developments, SHIB’s price faced some turbulence on the same day. The token saw a decline of nearly 2.5%, dropping to approximately $0.00001806, after hitting intraday highs of $0.00001851 and lows of $0.00001785. This decline aligns with broader market trends, which may temper some bullish expectations.
Nonetheless, the Shiba Inu marketing lead, known as LUCIE, has reignited discussions regarding the potential for SHIB to reach the $0.01 price target. In a statement made earlier this year, LUCIE expressed her commitment to holding the token since 2021, underlining her belief in its long-term potential, despite the time it may take to achieve such a target.
Market Data and Investor Sentiment
Supporting the cautious optimism, Coinglass data indicates a 5.9% drop in Shiba Inu’s futures open interest (OI), now at $52.65 million, alongside a nearly 22% decline in derivatives volume, which currently sits at $106.71 million. This trend mirrors the downward movement of SHIB’s price but does not detract from the overall optimistic outlook fueled by the recent burn rate surge and ongoing ecosystem enhancements.
In conclusion, the surge in Shiba Inu’s burn rate, coupled with community-backed aspirations for a $0.01 price target, underscores a growing sentiment among investors that the meme coin may have significant upside potential in the long run. As developments unfold, the SHIB community remains hopeful for a turnaround in price action that aligns with these bullish indicators.
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