Coincidentally or not, Shiba Inu [SHIB] recently made headlines in the crypto space with a staggering 3,674% increase in SHIB burn rates on the day of the US presidential election.
Traditional SHIB relies on its burn mechanism, sending tokens to unreachable wallets to reduce supply and increase value.
However, the timing of this surge is noteworthy.
The spike has attracted attention and coincided with renewed interest in SHIB prices as traders capitalized on the election move, sending SHIB prices soaring.
What’s Behind the Shiba Inu Burn?
The memecoin market has certainly been buzzing as BTC hit new highs, which are often catalysts for broader rallies in the crypto market.
DOGE [DOGE], which is up 12% on the week, has been a clear standout. This surge has been largely attributed to Elon Musk’s influence.
However, this cycle seems to be different from the previous one.
Unlike previous memecoin bull runs, this is not a “supercycle” where a bunch of memecoins like Popcat [POPCAT], dogwifhat [WIF], and others all surged in unison.
These coins, once the shining stars, are now recording losses, signaling a potential shift in investor sentiment.
TinTucBitcoin studies how Shiba Inu’s burn strategy has capitalized on this shift, as SHIB remains in the green.
According to the chart, Shiba Inu’s burn rate spiked significantly on election day.
Over 53 million SHIB tokens were burned in 24 hours, including a single transaction of nearly 29 million tokens.
This increased burning has helped SHIB achieve a daily gain of over 6%. However, its price has remained in a lackluster state for 8 months, failing to retest the average of $0.000030.
Regular burning alone may not be enough to trigger a breakout. Trading at $0.000018 at press time, SHIB needs to break above $0.000020 to have any significant upside advantage.
Going forward, SHIB will likely need to tap into DOGE’s momentum to maintain its bullish outlook and capitalize on potential future gains.
Is DOGE the Secret Catalyst for SHIB?
The surge in SHIB trading activity comes as Dogecoin is also seeing significant price increases. DOGE has increased by 20% in the same period, recently surpassing the $0.20 mark for the first time since April.
History shows that these two Meme Coins often move in sync, with interest in one coin driving the activity of the other.
With both coins experiencing a surge in volume, SHIB could very well follow Dogecoin as the crypto market remains volatile.
A significant increase in whale accumulation was observed the day after the election results were announced, which favored crypto enthusiasts. Around 800 million DOGE tokens were withdrawn from exchanges.
This trend confirms DOGE’s potential to lead a bull run, especially as market volatility pushes investors towards high-cap tokens.
This is where SHIB could play a key role. As the second largest memecoin by market cap, SHIB benefits from its burn strategy, along with the growth of DOGE.
If this trend holds, SHIB could test $0.000020. This is a key factor to break the 8-month consolidation and could continue to rise to $0.000030.
Therefore, monitoring the movement of DOGE will be essential to predict SHIB’s next move.
