Shiba Inu (SHIB) has experienced a surge in value this month, increasing by 20%. This growth can be attributed to the introduction of a token burn mechanism. On December 6, it was reported that 2,240 new addresses were registered for Shiba Inu, indicating increased investor interest.

Currently, Shiba Inu has a bearish market sentiment with a score of 35/100. In the past 24 hours, the asset has declined by 4.15%, but over the last 90 days, it has gained 34.49%. Analysts predict further price gains for Shiba Inu based on key on-chain activity and technical indicators.

One notable development is the historic peak in new addresses for SHIB, as reported by on-chain data analytics firm IntoTheBlock. This coincides with the upcoming token burn mechanism, which will see 70% of base fees generated from transactions being burned. The burning process will occur in two phases: a manual phase managed by the official deployer wallet, and an automatic transition starting in January.

The success of the token burn mechanism is dependent on the adoption rate of the network. As Shibarium experiences increased transactions and gas fees, the token burning also grows exponentially. This correlation creates a self-sustaining cycle of growth and value appreciation. Historically, token burn has triggered an upward surge in price.

The recent announcement by the Shiba Inu team has attracted new investors, as evidenced by the significant increase in registered addresses. This level of address registration has not been seen since August 16. Network growth is an important metric for attracting new investors, and positive growth is associated with bullish signals.

The growing bullish momentum is supported by the Bollinger Bands indicator, which shows that the price broke into the upper band at $0.000099. Analysts expect bulls to breach the $0.000011 level to set a new yearly high. In case of a pullback, the lower Bollinger Band at $0.0000086 is expected to provide support.

It is important for readers to conduct their own research before making any decisions related to cryptocurrencies. The information provided in this article is for informational purposes only and should not be considered as financial advice.