Ethereum News Today: Shiba Inu Burn Rate Surges 2200% as Supply Shrinks and Bullish Pattern Emerges

Shiba Inu (SHIB) has seen a dramatic increase in its token burn rate, sparking renewed bullish sentiment among investors. Over the past 24 hours, the burn rate surged by over 2,200%, removing more than 3 million SHIB tokens from circulation. This has pushed the total number of burned tokens to 410.75 trillion, marking a significant milestone in the token’s five-year journey [1]. The rapid decline in supply has drawn attention to the potential for a price rebound, especially as SHIB forms a bullish cup-and-handle pattern on its price chart. If this pattern completes, it could trigger a 70% price increase from current levels [1].

The burn rate’s sharp rise appears to be a strategic move by the Shiba Inu community to reduce supply and increase token scarcity. While SHIB’s price dipped slightly in the short term, the long-term technical indicators remain positive. The RSI has fallen to 36.73, indicating a potential for upward movement, while the Balance of Power suggests that seller dominance is fading [1]. A breakout above the $0.0000131 to $0.0000140 resistance level could push the price toward $0.0000175 and beyond, completing the cup-and-handle pattern [1].

The project’s integration with the Ethereum ecosystem also plays a crucial role in SHIB’s trajectory. Analysts like Crypto Patel have highlighted SHIB as one of the top Ethereum-based projects to watch, reinforcing its relevance in the broader crypto landscape [1]. As Ethereum continues to gain strength, SHIB benefits from increased exposure and demand.

Moreover, SHIB’s recent introduction of Shibarium’s Layer-2 technology has improved scalability and transaction efficiency, further supporting its long-term viability. This development has attracted both retail and institutional investors, who are increasingly viewing SHIB as more than just a meme token [1]. Additionally, the project has partnered with Zama to implement quantum-resistant encryption tools, enhancing its security and credibility [1].

While the 70% rally potential is speculative, it is rooted in the observed on-chain activity and bullish technical patterns. It is important to note that such price projections are not officially endorsed by the Shiba Inu team and are primarily based on market analysis. The token’s performance will depend on continued burn activity and broader market dynamics [1].

As the crypto market continues to show renewed interest in altcoins, SHIB’s rally aligns with the growing institutional adoption and retail investor enthusiasm. While Bitcoin and Ethereum remain dominant, altcoins like SHIB are gaining traction, particularly in markets where volatility and high-growth opportunities are attractive [1].

SHIB’s current trajectory reflects the evolving nature of the crypto space and the potential for meme tokens to transition into more substantive digital assets. However, the market will need to assess whether the fundamentals support such optimism or if the rally is driven by speculative momentum. Either way, the burn rate surge and bullish pattern suggest that SHIB remains a token to watch in the near term [1].

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[1] https://cryptonewsland.com/shiba-inu-hits-a-milestone/