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In the past two days, 17 million Shiba Inu (SHIB) tokens have been burned, according to data from shibburn.com. While this figure may sound impressive, it translates to a mere $500 worth of tokens being destroyed.
In the broader context, this amount is quite insignificant, especially considering Shiba Inu’s market capitalization is approximately $16.58 billion as of Thursday.
Nevertheless, in a landscape dominated by highly inflationary fiat currencies, where the M2 US dollar money supply has increased by about 50% since 2020, as reported by TradingEconomics, this serves as a reminder of the advantages of non-inflationary cryptocurrencies.
However, the narrative of inflation protection is not typically associated with meme coins like Shiba Inu; that is more relevant to Bitcoin (BTC).
Shiba Inu (SHIB) is regarded as a more speculative investment, a meme coin that thrives on hype cycles and its expanding, dedicated community of supporters, investors, and enthusiasts.
While the recent deflation data from shibburn.com is unlikely to significantly impact Shiba Inu, there are numerous other factors that may excite investors at this time.
Shiba Inu – Could a Parabolic Rally Be Next?
$SHIB was recently trading just above $0.000028, within its recent trading range and near its 21-day moving average (21DMA).
The remarkable surge in early November, attributed to President Trump’s victory in the US Presidential election, has largely subsided at this stage.
However, Shiba Inu’s robust rebound from its 50-day moving average (50DMA) earlier this week indicates that bullish sentiment remains prevalent in this market, and price forecasts continue to be optimistic.
This is not unexpected, given the favorable developments occurring in the USA at present.
The forthcoming US administration is anticipated to be the most supportive of cryptocurrency in history, and the new Congress, which is also very pro-crypto, is expected to provide regulatory clarity to the industry next year.
Trump has openly discussed his intentions to “do something great with crypto” during his upcoming term.
BREAKING
US PRESIDENT TRUMP SAYS “ WE
WILL DO SOMETHING GREAT WITH
CRYPTO ”
YOU ARE SERIOUSLY NOT BULLISH
ENOUGH. MEGA PUMP IS COMING
pic.twitter.com/OLNOaSijk5— Ash Crypto (@Ashcryptoreal) December 12, 2024
BREAKING 
The current environment in the cryptocurrency sector is promising, and meme coins, which have been among the top-performing segments this year, are likely to perform well in the upcoming months.
However, this does not imply a steady upward trajectory. Meme coins like Shiba Inu often undergo swift parabolic increases.
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A crypto trader known as Astekz mentioned that the $SHIB chart indicates “parabolic potential from here.”
$SHIB – Got a feeling this has parabolic potential from here pic.twitter.com/lELDLqI1ZM
— Astekz (@astekz) December 10, 2024
Meanwhile, The CryptoBull shared a chart suggesting that SHIB is poised to break out of a downtrend from its 2021 peaks.
$SHIB chart looks primed for launch very soon pic.twitter.com/DSDYxAkxKG
— The CryptoBull (@TheCryptoBull77) December 12, 2024
Other users on X have highlighted reasons why Shiba Inu is likely to be among the top gainers in any forthcoming meme season.
These reasons include the substantial size of the Shiba Inu community and its extensive and expanding ecosystem, which provides $SHIB with significant real-world utility.
$SHIB Will Be The Top Token for the next bull run and can overrun #DOGE
Shiba Inu project is growing fast as an entity.
Its value will likely grow as these initiatives are carried through with its USE CASES:SHIBASWAP
SHIBARIUM LAYER 2
METAVERSE
SHIBAETERNITY
D3 pic.twitter.com/DzCvKhjB6X
— SHIB Bezos (@BezosCrypto) December 7, 2024
SHIBARIUM 
SHIBAETERNITYHow High Will $SHIB Charge?
If parabolic rallies are imminent for Shiba Inu, what price levels could the meme coin reach?
Once the meme coin surpasses its previous record of just under $0.000090 and enters price discovery, the potential outcomes are uncertain.
However, a rally towards the 3.618 or 4.236 Fibonacci extension from the 2023 lows back to the 2021 highs indicates that gains of up to 10x from current levels are quite feasible.
This would result in $SHIB achieving a market capitalization exceeding $150 billion.
This may appear far-fetched, but if Bitcoin reaches $200,000, its market cap would surpass $4 trillion. In this scenario, SHIB’s market cap would only represent about 4% of Bitcoin’s, which is not implausible considering its status as a leading meme coin in the market.
Regardless, the near-term outlook appears very promising for the meme coin sector and Shiba Inu, although these markets remain highly volatile.
To realize substantial gains, investors must also be prepared to hold through swift and severe downturns.
The post Shiba Inu Burns 17M Tokens – Could a Parabolic Rally Be Next? appeared first on Cryptonews.
