Shiba Inu Starts July On A High Note: Burn Rate Surges 16,854%, Trading Volume Rises 170%
July 02 2024 - 9:00AM
NEWSBTC
Shiba Inu (SHIB) has begun July on a positive note, with several
on-chain metrics painting a bullish signal for the second-largest
meme coin by market cap. These bullish developments could provide
the much-needed turnaround for the meme coin, which had a June to
forget. SHIB’s Burn Rate Surges By 16,854% Data from the burn
tracking website Shibburn shows that Shiba Inu’s burn rate spiked
by over 16,854% in the last 24 hours, with over 300 million Shiba
Inu tokens burned during this period. This is massive for the meme
coin, given the positive impact the token burns have on its price.
These token burns help decrease SHIB’s circulating supply, which
ultimately drives up its price, especially if the demand for the
meme coin is on the rise. Related Reading: Crypto Analyst
Predicts 45% Drop For Bitcoin, But Says It Won’t Go Below This
Level Interestingly, on-chain data shows that the demand for Shiba
Inu is rising, with investors regaining their bullish sentiment
towards the meme coin and looking to add to their positions. This
is based on data from the Market Intelligence platform
IntoTheBlock, which shows that the concentration metric has turned
bullish, meaning that Shiba Inu whales and investors are adding to
their positions. The demand for Shiba Inu is also evident in
its spot and derivatives trading volume, which have spiked since
the beginning of this month. Data from CoinMarketCap shows that
over $191 million in SHIB was traded in the last 24 hours.
Additionally, data from Coinglass shows that SHIB’S derivatives
trading volume has surged by 170% in the last 24 hours. The
increased demand for Shiba Inu is also significant, considering how
much the meme coin declined in June due to the Shiba Inu whales who
offloaded a considerable amount of their holdings. The meme coin
also took a severe hit in June because of its strong positive price
correlation with Bitcoin. However, Shiba Inu is expected to
enjoy a price recovery as the flagship crypto is rebounding nicely.
History also suggests that this month will be bullish for the meme
coin, with data from Cryptorank showing that SHIB has ended the
last two Julys in the green. Shiba Inu Bullish Fundamentals
Coinbase Derivatives is already finalizing plans to list the
first-ever US-regulated Shiba Inu futures contract. The crypto
exchange revealed in its filing to the Commodity Trading Futures
Commission (CFTC) that it plans to list SHIB’s future contacts on
or after July 15. This move is bullish as it could help expand the
meme coin’s adoption, especially among institutional investors.
Related Reading: Analysts Says Cardano Has Bottomed And Will Rally
To $0.8, But It Must Hold This Level Furthermore, listing a
regulated futures market for SHIB could also set the stage for the
launch of a Shiba Inu Spot ETF. Bloomberg analysts James Seyffart
and Eric Balchunas have hinted at different times that the
Securities and Exchange Commission (SEC) is unlikely to approve a
Spot crypto ETF without a regulated futures market. Featured
image created with Dall.E, chart from Tradingview.com
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