Shiba Inu coin (SHIB) has once again caught investors’ attention as the market turns bullish. With recent developments in the SHIB ecosystem, many speculate whether the meme coin is poised for another parabolic rally similar to its 2021 run. Key drivers behind this optimism are the SHIB burn rate surge and growing activity on Shibarium, Shiba Inu’s Layer 2 blockchain.
SHIB Burn Rate Soars as Shibarium Activity Grows
The Shiba Inu ecosystem has seen a massive increase in its token burn rate this week. According to data from Shibburn, the burn rate surged by an impressive 920%, with 320 million SHIB tokens burned in the last seven days. On a daily basis, 11 million SHIB were destroyed, reflecting a 367% increase. This drastic reduction in supply, combined with the law of supply and demand, has fueled bullish sentiment among market participants.
At the same time, Shibarium has experienced significant growth. As reported by SHIB marketing lead Lucie on X, Shibarium transactions neared 30,000 in October, while the number of contracts jumped to over 18,200, up from 17,800 in September. This indicates that Shiba Inu’s Layer 2 solution is gaining momentum, adding to the overall positive outlook for the coin.
Could Shiba Inu Reach $1?
The big question on every SHIB holder’s mind is whether the coin can reach the elusive $1 price target. Back in 2021, Shiba Inu experienced an astronomical rise of 45,000% from January to May. Later that year, the price jumped another 1,500%, reaching its all-time high of $0.00008845 in October.
At the time of writing, SHIB is trading at $0.00001936, up 3% in the last 24 hours. With a steady increase in its burn rate and Shibarium activity, some analysts believe that SHIB could be gearing up for another massive rally. Coinglass data also supports this optimism, showing a 5% rise in SHIB’s futures open interest (OI) to $63 million, signaling increased investor interest.
In addition to the current trends, upcoming developments, such as the launch of the Shib DAO Foundation, are expected to play a key role in SHIB’s future price action. With all these factors in play, market analysts are speculating that Shiba Inu could potentially hit $1, driven by continued ecosystem growth and a broader meme coin frenzy.
