Shiba Inu (SHIB) is capturing renewed investor attention as its price edges closer to the psychologically significant $0.001 milestone. This momentum comes amid a dramatic 1 billion SHIB token burn, surging activity on the Shibarium network, and a sharp decline in exchange-based supply—factors that together are fueling speculation of a looming supply crunch and potential parabolic rally.
Over the past week, the broader meme coin market has rebounded, gaining nearly 10% in total market capitalization to reach $52 billion. This positive sentiment is providing strong tailwinds for SHIB, positioning it for what analysts suggest could be one of its most impactful rallies in recent memory.
The Surge in SHIB Token Burns
A pivotal development driving recent optimism is the mysterious burning of 1 billion SHIB tokens by an unidentified wallet. According to on-chain data, this large-scale burn occurred in a single transaction sent directly to a dead wallet address—effectively removing those tokens from circulation permanently.
This wasn’t an isolated event. Just one day later, another wallet contributed to the deflationary pressure by burning an additional 23 million SHIB tokens. These burns have significantly accelerated the overall SHIB burn rate, tightening supply at a time when demand indicators are beginning to strengthen.
👉 Discover how token burns can influence price movements and market dynamics in real time.
Shibarium Activity Fuels Deflation
The increased burn rate is closely tied to growing activity on Shibarium, Shiba Inu’s Layer-2 blockchain. As more users engage with decentralized applications (dApps), pay gas fees, and execute transactions on the network, more SHIB tokens are burned as part of the protocol’s deflationary mechanism.
DeFi analytics platform DeFiLlama reports that Shibarium’s total value locked (TVL) has surged by over $1 million in just seven days, reaching its highest level since late January. This uptick signals renewed confidence and usage within the ecosystem—both critical drivers for sustained token burns and long-term value accrual.
With higher network activity comes increased transaction volume, which directly correlates with more tokens being removed from circulation. As this cycle continues, the shrinking supply could amplify upward price pressure, especially if demand remains steady or increases.
Exchange Supply Hits Four-Year Low
Another bullish signal comes from on-chain supply metrics. Data from analytics firm Santiment reveals that SHIB’s exchange reserves have dropped to their lowest level in four years. Currently, only 100.42 trillion SHIB tokens—valued at approximately $1.3 billion—are held across centralized exchanges.
This represents just 16% of SHIB’s 589 trillion circulating supply, indicating that the vast majority of holders are moving their tokens off exchanges and into private wallets. This behavior strongly suggests a reduced willingness to sell, often interpreted as a sign of long-term conviction.
When fewer tokens are available for immediate trading, even modest increases in buying pressure can trigger sharp price movements. If this trend continues, a supply crunch may emerge—where demand outpaces available supply—potentially leading to rapid price appreciation.
👉 Explore how supply dynamics and holder behavior shape cryptocurrency market trends.
Can SHIB Reach $0.001?
Reaching $0.001 per SHIB** would require a market capitalization of approximately **$589 billion, placing it among the top cryptocurrencies by valuation. While ambitious, this target is not outside the realm of possibility under the right conditions.
Key factors that could propel SHIB toward this milestone include:
- Sustained increase in burn rate due to growing Shibarium adoption
- Declining exchange liquidity reducing sell-side pressure
- Increased institutional interest, possibly including a spot SHIB ETF
Notably, LUCIE, a Shiba Inu marketing executive, has publicly discussed the possibility of a spot SHIB ETF filing, which could bring institutional-grade exposure and regulatory validation. Such a development would likely attract significant capital inflows.
Additionally, early Bitcoin advocate Davinci Jeremie has emphasized that Shibarium holds the key to unlocking SHIB’s full potential, transforming it from a meme coin into a functional ecosystem with real utility.
If these catalysts align and market conditions remain favorable, SHIB could not only reach $0.001 but also surpass other major altcoins in market cap—solidifying its status as both the largest meme coin and a dominant player in the broader crypto landscape.
Technical Analysis: Bullish Reversal on the Horizon?
As of now, SHIB is trading at $0.0000135, reflecting a 2.5% gain over the past 24 hours. More importantly, price action suggests a potential bullish reversal is underway.
On the 4-hour chart, SHIB has broken above the upper boundary of a descending parallel channel—a pattern often associated with bearish trends. This breakout indicates weakening control by sellers and rising buying pressure.
The Relative Strength Index (RSI) currently sits at 51, a neutral reading but one that shows promise. The formation of higher lows on the RSI chart signals easing selling pressure and growing momentum among buyers.
Two critical resistance levels are now in focus:
- $0.0000141 – The 50-day Simple Moving Average (SMA), which if reclaimed, could confirm a trend reversal.
- $0.000019 – The 200-day SMA, representing a 36% upside from current levels.
A successful break above the 50-day SMA could trigger a wave of short covering and new long entries, accelerating momentum toward higher targets.
Frequently Asked Questions (FAQs)
Q: Why is Shiba Inu price rising now?
A: SHIB’s recent price increase is driven by a surge in token burns, growing activity on Shibarium, and declining exchange supply—all contributing to bullish market sentiment.
Q: What would it take for SHIB to reach $0.001?
A: Reaching $0.001 would require sustained network growth, accelerated token burns, reduced circulating supply, and potential catalysts like a spot ETF approval or institutional adoption.
Q: How do SHIB burns affect price?
A: Burning tokens reduces the total circulating supply, creating deflationary pressure. When combined with steady or rising demand, this scarcity can drive price appreciation.
Q: Is low exchange supply bullish for SHIB?
A: Yes. With only 16% of SHIB held on exchanges, there’s limited immediate selling pressure. This scarcity can amplify price movements during periods of increased buying interest.
Q: What role does Shibarium play in SHIB’s future?
A: Shibarium is central to SHIB’s long-term value proposition. Increased usage leads to more burns, staking opportunities, and ecosystem development—transforming SHIB from meme to utility.
Q: Could a SHIB ETF boost the price?
A: A spot ETF would provide regulated exposure to SHIB, likely attracting institutional investors and increasing liquidity—both powerful catalysts for price growth.
👉 Stay ahead of major crypto movements with real-time market insights and analytics tools.
Final Outlook
Shiba Inu stands at a pivotal juncture. With record-breaking token burns, dwindling exchange supply, and revitalized ecosystem activity on Shibarium, the foundations for a major rally appear to be forming.
While reaching $0.001 remains an ambitious goal, the convergence of technical strength, deflationary mechanics, and potential regulatory developments makes it increasingly plausible—especially if current trends continue into 2025.
For investors, the message is clear: monitor burn rates, track Shibarium TVL, and watch exchange outflows closely—these metrics may hold the key to unlocking SHIB’s next major price surge.
Core Keywords: Shiba Inu, SHIB price, $0.001 target, SHIB burn, Shibarium, supply crunch, meme coin rally