Shiba Inu Coin Primed for Potential Breakout Rally, Analysts Say

The meme token Shiba Inu (SHIB) is garnering renewed attention from crypto investors as the week comes to a close, with many speculating about a possible repeat of its meteoric 2021 price surge. Recent developments in the SHIB ecosystem, including an accelerated token burn rate and growing activity on the Shibarium network, have fueled optimism about the coin’s future prospects.

SHIB Burn Rate Skyrockets Amid Shibarium Growth

Data from Shibburn shows the SHIB burn rate has exploded by 920% over the past week, with 320 million tokens permanently removed from circulation. This brings the total SHIB supply down to 589.26 trillion. The increased burning activity aligns with the economic principle of scarcity potentially driving up value.

Simultaneously, Shibarium, SHIB’s Layer 2 blockchain solution, is experiencing a notable uptick in usage. According to SHIB marketing lead Lucie, new transactions on Shibarium are approaching 30,000, while the number of contracts has increased from 17,800 in late September to over 18,200 in October.

Potential for Another Parabolic Rally?

The combination of accelerated token burns and growing network activity has some analysts drawing comparisons to SHIB’s extraordinary price action in 2021. During that period, SHIB’s value skyrocketed by 45,000% between January and May, followed by another 1,500% surge to its all-time high of $0.00008845 in October.

At press time, SHIB is trading at $0.00001936, up nearly 3% in the last 24 hours. The token’s intraday low and high were $0.00001851 and $0.00001948, respectively. Data from Coinglass indicates a 5% increase in SHIB’s futures open interest to $63 million, suggesting growing investor appetite.

Some bullish predictions see SHIB potentially reaching the $1 mark in the long term, citing factors such as the broader meme coin sector’s popularity and upcoming developments like the Shib DAO Foundation launch.

While such ambitious price targets remain highly speculative, the recent ecosystem developments and renewed market interest have undoubtedly put Shiba Inu back in the spotlight for crypto traders and enthusiasts alike.