Shiba Inu expanded its deflationary mechanism in the past week as over 535 million SHIB was torched in what is considered a renewed embrace for the DOGE rival
Popular memecoin Shiba Inu saw a price increase this weekend as its community burned many tokens over the past 7 days.Â
Reports show that the weekly burn rate surged by 415%, with 535 million SHIB tokens destroyed over the past seven days. This reduction in supply has sparked optimism among investors, who are now anticipating further price gains.
Shiba Inu Burn Rate Hits New High
According to data from Shibburn, the total number of tokens removed from circulation has reached 410.49 trillion. The burning mechanism reduces the overall supply by sending tokens to a dead wallet, making them permanently inaccessible. This process aims to create scarcity, which could increase the token’s value over time.
Furthermore, Shiba Inu’s price increased by over 2% in intraday trading on Saturday, reaching $0.00001276. The token’s lowest price for the day was $0.00001244, which peaked at $0.0000129.Â
In line with the recent positive market sentiment, analysts believe this price movement aligns with the increased burn activity, as fewer tokens in circulation could boost demand.
Meanwhile, market data shows that the broader cryptocurrency market has had a volatile week. However, the positive trajectory of Shiba Inu and other tokens has helped lift market sentiment.Â
In the past 24 hours, memecoins have seen some gains, with the official TRUMP coin rising by 2%, Dogecoin by 2.56%, BONK by 3.2%, and FLOKI also recording an increase.
Market Analysts Predict Further Gains
Crypto market analysts are forecasting a potential 22% price increase for Shiba Inu. According to Rose Premium Signals, a market analyst on X, the token has recently tested the upper resistance of a falling wedge pattern. Further gains could be expected if it breaks above the 50-day moving average.
The next price targets are $0.00001375, $0.00001485, and $0.00001565. In addition, as the broader crypto market shows signs of recovery, traders remain hopeful that SHIB’s price will continue to climb.
While market conditions remain uncertain, the rising burn rate and bullish technical indicators suggest that Shiba Inu could be on track for a stronger performance in the coming weeks.
Earlier this week, Digital asset analyst Del Crxpto suggested that the United Arab Emirates (UAE) may introduce a national crypto reserve, including Shiba Inu (SHIB). This occurred days after the U.S. launched its digital asset reserve.
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