Shiba Inu (SHIB) is starting July off on a positive note, with several on-chain metrics indicating a bullish outlook for the popular meme coin. After a forgettable June, SHIB is seeing a surge in its burn rate, with over 16,854% increase in the last 24 hours resulting in the burning of over 300 million tokens. These token burns are crucial as they reduce SHIB’s circulating supply, leading to a rise in price, especially when demand is high.
On-chain data reveals a growing demand for Shiba Inu, with investors showing renewed interest in the meme coin and increasing their positions. The concentration metric from IntoTheBlock indicates that Shiba Inu whales and investors are actively adding to their holdings. Moreover, both spot and derivatives trading volumes for SHIB have spiked since the start of July, with over $191 million traded in the last 24 hours and a 170% surge in derivatives trading volume.
Despite facing significant declines in June due to whale sell-offs and a strong positive correlation with Bitcoin, Shiba Inu is poised for a price recovery as Bitcoin rebounds. Historical data also points to a positive trend for SHIB in July, with both of the last two years ending in the green for the meme coin. Additionally, Coinbase Derivatives is gearing up to list the first US-regulated Shiba Inu futures contract, potentially attracting institutional investors and expanding SHIB’s adoption.
The listing of a regulated futures market for SHIB could pave the way for a Shiba Inu Spot ETF, as suggested by Bloomberg analysts. The Securities and Exchange Commission (SEC) is unlikely to approve a Spot crypto ETF without a regulated futures market in place. Overall, these bullish fundamentals, combined with the recent surge in burn rate and trading volumes, indicate a positive outlook for Shiba Inu in July. Investors and holders of SHIB may see a reversal of fortunes and a potential price rally in the coming weeks.