Shiba Inu experienced a strong rally of 8% before a slight pullback, as the SHIB community remains hopeful that the cryptocurrency can remove one zero from its decimal point, a milestone that was last achieved in December.
On-chain data presents a mixed picture. While the number of active and new addresses has seen an increase over the past three days, the SHIB burn rate has turned negative, currently standing at -38%.
Shiba Inu’s journey towards eliminating a zero continued this week with an 8% price rally, reaching its highest price since mid-January, before experiencing a slight retracement. The meme coin’s on-chain metrics appear robust, with a surge in the number of active users on Shibarium, despite a slowdown in the SHIB burn rate.
At the time of writing, SHIB is trading at $0.000009774, recording a 2.88% gain in the past day, while the trading volume spiked by 44% to reach $200 million.
In the last 24 hours, the meme coin reached an intra-day high of $0.000009915, marking an 8% rally from its Monday price of $0.000009234. This is the highest price it has reached since January 11 and brings it close to removing one zero from its decimal point, which remains a significant short-term goal for the Shiba Inu community.
The last time SHIB eliminated a zero was in December, when it reached a seven-month high of $0.00001165 on December 17. The meme coin maintained this price level for two weeks before adding an extra zero on January 2 of this year, as the entire crypto market began to correct after the previous year’s bull run.
What’s next for Shiba Inu (SHIB)? The meme coin is steadily approaching the $0.00001 resistance level, which has proven to be a formidable barrier for months. The price increase is supported by strong on-chain and technical fundamentals, instilling confidence in the SHIB community that it can sustain its price above this level.
Shibarium, a popular platform in the crypto community, continues to gain popularity, with the number of transactions on the Ethereum Layer 2 chain reaching new highs this week. The transaction volume surged by over 340% in 24 hours, exceeding 4.35 trillion tokens.
The number of active accounts on Shibarium also experienced significant growth, increasing by 49%, while new accounts grew by over 780%. BONE, the native token of Shibarium, has seen substantial gains as on-chain activity surges, with its daily volume skyrocketing by 220% in just 24 hours.
However, it’s not all positive news for Shiba Inu. The burn rate has declined significantly this week, dropping to -74% after a 1,800% rise on Tuesday. At present, the burn rate stands at -38.34%, according to data from Shibburn.
Burns play a crucial role in Shiba Inu as they remove millions of SHIB tokens from circulation, increasing the value of each remaining token. So far, the community has burned 410 trillion tokens out of a total supply of 999.9 trillion. With the circulating supply now at 581 trillion, there is still a long way to go before the burns can have a substantial impact on the price of SHIB.