Shiba Inu Price Surges: Burn Rate and Whale Activity Soar

Have you ever watched a cryptocurrency skyrocket and wondered what’s fueling the frenzy? Shiba Inu (SHIB), the meme coin that once seemed like a playful underdog, is making waves again. On July 21, 2025, its price surged to levels not seen since May, climbing 55% from its yearly low. What’s driving this rally? From a soaring burn rate to aggressive whale accumulation, the pieces are falling into place for SHIB’s resurgence. Let’s unpack the factors behind this crypto’s comeback and explore whether it’s poised for even bigger gains.

Why Shiba Inu Is Stealing the Crypto Spotlight

The crypto market is no stranger to wild swings, but Shiba Inu’s recent performance stands out. Unlike its early days as a Dogecoin knockoff, SHIB has carved out a niche, fueled by community enthusiasm and strategic moves. Its latest rally isn’t just hype—there’s real momentum behind it. Let’s dive into the key drivers, from token burns to whale activity, and see what they mean for investors.

Burn Rate Ignites the Rally

One of the biggest catalysts for Shiba Inu’s price jump is its burn rate. In the past 24 hours alone, over 1.19 million SHIB tokens were burned, reducing the circulating supply to roughly 584.5 million. That’s an 11.3% spike in burns, and it’s not just a one-off. By permanently removing tokens from circulation, burns create scarcity, which can drive up value if demand holds steady. Think of it like a limited-edition sneaker drop—fewer pairs, higher prices.

Token burns are a powerful tool for meme coins like Shiba Inu to boost value and signal long-term commitment to investors.

– Crypto market analyst

Why does this matter? A shrinking supply means each remaining token theoretically holds more value. For SHIB holders, this is like watching the pie get smaller but their slice getting bigger. The community-driven burn initiatives, often fueled by grassroots efforts, are proving effective. But burns alone don’t tell the whole story.

Whales Are Diving In

Big players, or whales, are another force behind SHIB’s surge. Recent data shows the top 100 holders now control 112.17 billion tokens, a 2.8% increase over the past month. That’s a jump from 105 trillion tokens earlier this year. Meanwhile, exchange balances have dropped by nearly 1%, sitting at 275.4 trillion tokens. What does this tell us? Investors are holding, not selling, and whales are betting big on SHIB’s future.

Whale activity often acts like a market signal. When deep-pocketed investors start accumulating, it’s a sign they see upside potential. I’ve always found it fascinating how these moves can spark FOMO (fear of missing out) among smaller retail investors, creating a feedback loop that pushes prices higher. But it’s not just blind optimism—there’s strategy here.

• Increased whale holdings: Top investors are stockpiling SHIB, signaling confidence.
• Lower exchange balances: Fewer tokens on exchanges suggest reduced selling pressure.
• Market sentiment: Whale moves often trigger broader market enthusiasm.

This whale-driven momentum is like a tide lifting all boats. But there’s another piece to the puzzle: Ethereum’s rally.

Ethereum’s Rise Lifts Meme Coins

Shiba Inu, as an ERC-20 token, rides Ethereum’s coattails. When Ethereum (ETH) surges, meme coins like SHIB and Pepe often follow. On July 21, ETH hit $3,800, its highest level since December 2024, and a staggering 175% above its yearly low. This isn’t just a coincidence—Ethereum’s ecosystem supports thousands of tokens, and a strong ETH price creates a rising tide for altcoins.

Why does Ethereum matter so much? It’s the backbone of many meme coins, providing the infrastructure for transactions and smart contracts. When ETH climbs, it signals a healthy ecosystem, boosting confidence in tokens like SHIB. Perhaps the most interesting aspect is how this interplay creates opportunities for savvy investors who track both markets.

Ethereum’s strength is a green light for altcoins, especially meme coins with strong community backing.

– Blockchain strategist

So, with Ethereum flexing its muscles, SHIB investors are reaping the benefits. But can the rally hold? Let’s turn to the charts for clues.

Technical Analysis: What the Charts Say

Charts don’t lie, but they can be tricky to read. For Shiba Inu, the daily timeframe paints a bullish picture. The price bottomed out at $0.000010, forming a double-bottom pattern—a classic signal of a reversal. Now, SHIB is eyeing the neckline at $0.00001755, a key resistance level. Breaking this could open the door to the 50% Fibonacci retracement point at $0.00002180.

Other indicators are flashing green too. SHIB has climbed above its 50-day and 200-day moving averages, and the gap between them is narrowing, hinting at a potential golden cross. For those unfamiliar, a golden cross occurs when a short-term moving average crosses above a long-term one, often signaling a strong uptrend. Add in a bullish Supertrend indicator and upward-pointing oscillators like the Relative Strength Index (RSI) and MACD, and the technicals scream optimism.

That said, nothing’s guaranteed. A drop below the $0.00001453 support could derail the bullish case, so investors should keep an eye on that level. Risk management is key in crypto’s wild west.