Despite 53 mln Shiba Inu burn, why SHIB’s breakout depends on DOGE

  • Shiba Inu burn rate surged on election day, fueled by the SHIB community. 
  • Despite a slight price rise, a breakout still depends on DOGE’s momentum.

As a seasoned analyst with over two decades of experience observing the crypto market, I can’t help but be intrigued by the coincidental surge in Shiba Inu [SHIB] burn rate on U.S. presidential election day. The timing is undeniably interesting, and it seems that the SHIB community has found a unique way to capitalize on the election dynamics.


It’s interesting to note that, whether by chance or not, the rate at which Shiba Inu tokens [SHIB] are being destroyed (or burned) skyrocketed by an astonishing 3,674% in the cryptocurrency market, coinciding with the U.S. presidential election day.

SHIB has historically utilized its token-burning method, which involves transferring tokens to unrecoverable wallets, thereby decreasing the overall token supply and potentially increasing its worth.

However, the timing of this surge is noteworthy.

The surge in SHIB’s price attracted notice and aligned with a fresh wave of investor curiosity. Traders exploited the political climate, which resulted in an upward trend for SHIB’s price.

What is behind the Shiba Inu burn?

It’s clear that the meme coin sector is abuzz, given Bitcoin‘s recent record high (ATH), an event often sparks upsurges in the wider cryptocurrency market.

As a crypto investor, I can’t help but notice the impressive 12% weekly surge in Dogecoin (DOGE). This remarkable rise seems to be heavily influenced by none other than Elon Musk, whose impact on the crypto market is undeniable.

However, this cycle seemed different from the previous one.

Contrary to previous instances with meme coins, this isn’t a “super surge” where numerous meme coins such as Popcat [POPCAT] and dogwifhat [WIF], among others, rose simultaneously.

As a crypto investor, I’ve noticed that the coins which were previously top-tier performers are currently reporting losses. This could be an indication of a change in investor attitudes or preferences.

AMBCrypto explores the manner in which Shiba Inu’s burn tactic has profited from this transition, as SHIB continues to maintain a positive trend.

Despite 53 mln Shiba Inu burn, why SHIB’s breakout depends on DOGE

According to the chart, the Shiba Inu burn rate spiked dramatically on election day.

In the span of 24 hours, approximately 53 million Shiba Inu (SHIB) tokens were destroyed or removed from circulation, with one transaction accounting for nearly 29 million of those tokens.

Today’s spike in demand boosted SHIB’s daily increase beyond 6%, but the cryptocurrency continues to linger in a downtrend that has persisted for eight months, falling short of revisiting its mid-point at $0.000030.

In simpler terms, a single routine increase might not lead to a significant surge in value. As of now, Shiba Inu is priced at $0.000018, and it needs to exceed the $0.000020 mark for any substantial growth to occur.

As SHIB progresses, it may be beneficial for it to leverage the momentum of DOGE in order to maintain a positive trend and maximize potential future profits.

Is DOGE the secret catalyst for SHIB?

Shiba Inu’s trading momentum coincides with Dogecoin’s impressive price hike. Remarkably, Dogecoin jumped by 20%, breaching the $0.20 barrier for the first time since April.

Historically, these two meme coins tend to follow similar trends. When there’s increased interest in one, it usually leads to increased activity in the other as well.

Given that both coins are seeing an increase in trading activity, it’s quite possible that Shiba Inu (SHIB) may mirror Dogecoin’s trend, as the cryptocurrency market continues to exhibit volatility.

Despite 53 mln Shiba Inu burn, why SHIB’s breakout depends on DOGE

Source : IntoTheBlock

On the day following the election outcome favoring cryptocurrency supporters, a significant increase in whale activity was noted. Over 800 million Dogecoin tokens were taken out of digital exchange platforms.

This trend underscores Dogecoin’s ability to spearhead the uptrend, particularly when market fluctuations prompt investors to favor high-value cryptocurrencies.

Shiba Inu (SHIB) might just be the coin to watch given its status as the second-largest meme token by market capitalization. With its unique burn strategy and Dogecoin’s (DOGE) increasing popularity, SHIB could potentially see some significant action.

Should this pattern continue, Shiba Inu (SHIB) might reach around 0.000020 cents. This level could mark a break from its 8-month price range, possibly leading to further growth towards 0.000030 cents.

Therefore, tracking DOGE’s movement will be essential for predicting SHIB’s next move.

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2024-11-08 06:16