Is the SHIB Price Ready to Take off?

TL;DR

Shiba Inu’s team and community removed more than one billion tokens from the circulating supply in the last 24 hours.
However, SHIB’s price remains in red territory on a weekly scale.

The Burning Goes Through the Roof

The second-largest meme coin, Shiba Inu, saw its burn rate skyrocket by approximately 7,200% in the past 24 hours. This resulted in over 1.1 billion tokens being sent to a null address.

While the USD equivalent of the destroyed stash is insignificant, continuous efforts in the field will reduce the circulating supply of SHIB, making it more scarce and possibly more valuable in the future (should demand increase or remain constant).

Another bullish factor worth mentioning is Shiba Inu’s exchange netflow. According to CryptoQuant’s data, outflows have exceeded inflows in the last week, suggesting a potential shift from centralized exchanges toward private wallets. This, in turn, reduces the immediate selling pressure.

Despite the positive developments, the price of the meme coin has underperformed on a weekly scale. It currently trades at around $0.00001876 (per CoinGecko’s data), representing an 8% decline for that timeframe.

How’s the Big Rival Doing?

The undisputed leader in the meme coin sector – Dogecoin (DOGE) – has performed quite similarly to SHIB in the past seven days. Its price has tumbled by approximately 9% to the current $0.33. 

Nonetheless, crypto X is rammed with analysts who believe that a massive DOGE rally is incoming. The X user Lucky recently told his over two million followers that the meme coin “is gaining serious momentum.” They suggested that Dogecoin’s next potential rally would be “epic,” claiming that the $1 milestone “is just a matter of time.”

Earlier this week, Ali Martinez wondered how some could bet against DOGE since “at any moment” it could explode by a staggering 900% in just 48 hours. Such a rally would mirror the asset’s performance at the end of January 2021, when the valuation exploded by triple digits in a few days. 

Meanwhile, the meme coin might receive a serious price boost should the US Securities and Exchange Commission (SEC) approve Bitwise’s intention to launch a spot DOGE ETF in America. The investment vehicle will give people more options to gain exposure to the meme coin, which could positively reflect its performance.