Shiba Inu (SHIB), the second-largest meme coin by market capitalization, has recently been overshadowed by newer meme tokens like FARTCOIN and PEPE, which have posted significant gains over the past month. However, a dramatic 22,000% surge in SHIB's burn rate, coupled with a notable increase in active addresses, has ignited discussions about its potential to reclaim momentum and compete with these emerging rivals.
At the time of writing, SHIB is trading at approximately $0.000013, reflecting a minor 2% decline amidst a broader cryptocurrency market pullback. This dip occurred as Bitcoin retreated from its recent highs, falling below the $96,000 mark.
Recent SHIB Burn Rate and Network Activity
A remarkable surge in the SHIB burn rate has captured market attention. Over the last 24 hours, more than 27 million SHIB tokens were permanently removed from circulation. A significant portion of this, over 15 million tokens, was burned by a single anonymous address, contributing to the massive spike.
This increase in token burning coincides with a substantial rise in on-chain activity. Data indicates that the number of active SHIB addresses over a seven-day period has reached 23,014—the highest level observed in nearly two months. Growing network usage typically leads to more transactions, which in turn can accelerate the burn rate as transaction fees contribute to the burning mechanism. This symbiotic relationship between usage and token scarcity often lays the foundation for a potential price recovery.
The Challenge from New Meme Coins
The meme coin sector is notoriously dynamic, with investor capital frequently rotating between tokens. Recently, traders have been chasing higher returns in newer, more volatile coins. While SHIB has seen a modest 9% gain over the past month, tokens like FARTCOIN have exploded by over 196% in the same period. PEPE has also outperformed, registering a 23% increase.
This trend highlights a market preference for newer entrants, often at the expense of established players. However, veteran coins like SHIB and Dogecoin offer relative stability compared to the extreme volatility of newer projects. This stability could become attractive again if the newer tokens show signs of a weakening trend or if market risk appetite shifts. Some analysts are already predicting an upcoming rally for SHIB, suggesting the tide may be turning.
For SHIB to truly compete, it must sustain its improved fundamentals. A consistently high burn rate and growing active user base are crucial. If these metrics remain strong, they could catalyze a capital rotation back into SHIB. Conversely, if they falter, newer coins may continue to dominate investor interest.
Technical Outlook for Shiba Inu Price
From a technical analysis perspective, the SHIB/USDT weekly chart shows the price attempting to break out from a descending parallel channel. A successful breakout would signal that the prolonged bearish momentum is waning, potentially opening the door for a new upward trend.
The key resistance level to watch is $0.0000173. A decisive weekly close above this price would establish a higher high, confirming a bullish trend reversal from a technical standpoint. For this move to gain credibility, it would need to be supported by strengthening momentum, indicated by the Relative Strength Index (RSI) moving above the neutral 50 level.
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Should the bullish scenario fail to materialize and SHIB gets rejected at the channel's resistance trendline, the price could retreat to seek support. The next significant support zone sits around $0.0000108. The sustainability of any price recovery will likely be tied to the underlying on-chain health—namely, whether the high burn rate and active address count can be maintained.
Frequently Asked Questions
What needs to happen for Shiba Inu to compete with new meme coins?
For SHIB to compete effectively, it needs to demonstrate sustained fundamental strength, such as a high burn rate and growing network activity, to trigger a capital rotation away from newer coins. This would also require a clear technical breakout from its current bearish trend structure.
Why is the SHIB burn rate surging so dramatically?
The burn rate is directly tied to increased network activity. As the number of active addresses and transactions rises, more tokens are used to pay transaction fees, which are subsequently burned. This surge indicates higher usage, which is a fundamentally bullish indicator for the network's economic model.
What is the key price level for a SHIB bullish reversal?
The most critical resistance level is $0.0000173. A decisive weekly close above this price, accompanied by a rising RSI above 50, would confirm a shift in market structure and could trigger the next leg up toward higher resistance targets.
Are newer meme coins like FARTCOIN a better investment than SHIB?
Newer meme coins often offer higher short-term volatility and potential for rapid gains, but they also carry significantly higher risk and less proven track records. Established coins like SHIB may offer more stability. The choice depends entirely on an individual's risk tolerance and investment strategy.
How does network activity influence the SHIB price?
Increased network activity leads to more transactions and a higher burn rate, reducing the overall token supply. If demand remains constant or increases, this reduction in supply can create upward pressure on the price, according to basic economic principles.
Can SHIB's price overcome the current bearish trend?
Yes, it is possible. The key would be a sustained increase in buying pressure that pushes the price above key technical resistance levels, confirmed by strong on-chain fundamentals like an active user base and a high burn rate. This would signal a renewal of investor confidence.