Shiba Inu, the second-largest meme cryptocurrency by market capitalization, has exhibited several bullish indicators despite recent price struggles. The token's burning mechanism has experienced a dramatic increase, while on-chain metrics suggest growing investor confidence.
At the time of writing, the meme coin trades at approximately $0.00001034, representing a 1% decline over the past 24 hours. Its market capitalization stands at $6.09 billion, positioning it as the 34th-largest cryptocurrency. However, multiple factors point toward a potential reversal in the near term.
Burn Rate Increases by Over 88,000%
The Shiba Inu community has destroyed nearly 30 million tokens in the last 24 hours, according to data from Shibburn. This represents an 88,250% surge compared to the previous day's burn activity.
The burning mechanism was introduced by the development team in 2022 to reduce SHIB's circulating supply. Since its inception, the initiative has eliminated 410.75 trillion tokens from existence. Approximately 585.22 trillion SHIB tokens remain in circulation.
Shibarium Activity Shows Revival
Shibarium, the layer-2 blockchain solution for Shiba Inu, has experienced a notable uptick in daily transactions. Earlier this month, the network processed between 2,000 and 5,000 transactions per day. Recent activity has pushed this number above 10,000 daily transactions.
While these figures remain below the peak levels recorded at the beginning of the year, the upward trajectory indicates growing ecosystem engagement. Increased network activity often correlates with heightened interest in the underlying asset and can serve as a precursor to price appreciation.
The protocol's recovery suggests developers and users are actively building and interacting with applications on the network. This sustained activity could provide fundamental support for SHIB's valuation in the future.
Another significant development involves the amount of Shiba Inu held on centralized exchanges. Current data shows that just over 82 trillion tokens remain on trading platforms, approaching the four-year low recently registered.
SHIB Exchange Reserves, Source: CryptoQuant
The declining exchange balance indicates investors are transferring their holdings to private wallets and self-custody solutions. This movement typically reduces immediate selling pressure, as tokens held in personal wallets are less likely to be sold quickly compared to those readily available on exchanges.
Community Sentiment Remains Optimistic
Despite the recent price decline, prominent community members maintain bullish outlooks. Analyst Shib Spain has predicted a substantial rally could materialize soon, projecting potential price movement above $0.00001350.
Source: X
Another analyst, EtherNasyional, highlighted that Shiba Inu's momentum indicators have reached historic lows. The analyst suggested the token is consolidating strength within a major demand zone. This period of quiet accumulation could precede a significant breakout, according to the market observer.
Source: X
