Shiba Inu's Mystery Rally Shows No Signs of Slowing Down

Shiba Inu's price dropped by 3% on Monday after rising over 25% in the last two days. The surge in SHIB is attributed to supply burns, Korean market demand, and ecosystem expansion. Over 1 trillion tokens were burned in 48 hours, with a significant portion of it being done on Monday, marking the largest burning activity in the past year.

The launch of Woofswap DEX v3 has also contributed to the SHIB price increase, as tokens created on Woofswap are paired exclusively with SHIB and traded at a 1% trading fee. Nearly 70% of this fee burns SHIB and the newly created token, resulting in a near-term deflationary impact.

However, the speculative demand for SHIB is easing, as indicated by a sharp decline in positional buildup and reduced retail interest. The funding rate remains at a premium, suggesting that traders continue to buy long positions, potentially hoping for a sustained uptrend.