The surge in activity on the Shibarium network has led to a remarkable increase of 6,000% in the burning rate of Shiba Inu. Despite this, SHIB is struggling to break free from its bearish trend, causing it to drop in rank among the top twenty cryptocurrencies.
The recent surge in the burning of Shiba Inu tokens is a cause for celebration, as it has reached an impressive 6,000% in the past 24 hours. This surge is a result of the heightened activity on the Shiba Inu and its Shibarium network. Interestingly, this surge coincided with a positive price change after a lackluster performance for the week.
With this recent burn, the total number of burnt tokens now stands at 410,727,066,276,659. The burning mechanism is designed to decrease the total circulating supply of tokens, which in turn increases the value of the remaining tokens and boosts prices. In the past, SHIB has had a significantly lower amount of tokens compared to its total circulating supply. However, the development team promises to increase the quantity and frequency of tokens.
The burning rate has been significantly increased by the Shibarium network, which is the layer two protocol for Shiba Inu. Its adoption has led to a surge in BONE transactions, with a portion of the fees being converted into SHIB and subsequently burned.
Furthermore, the Shiba community has proposed a new burning mechanism on Coinbase and Binance, as reported by Crypto News Flash. If implemented, this initiative could result in billions of tokens being burned, similar to what has been observed with LUNC on Binance.
At the time of writing, SHIB is currently trading at $0.00001731, experiencing a negative change of 4% in the past 24 hours. This drop in price has caused the altcoin to slip down in its market rankings, now occupying the 14th place with a market cap of $10.2 billion.
Despite its recent underperformance, SHIB remains the second-best memecoin in the market. However, experts predict that it has the potential to surpass Dogecoin (DOGE) and become the largest memecoin. Currently, DOGE holds the 10th position with a market cap of $17.9 billion.
The renewed interest from whales is bolstering a bullish outlook for SHIB. Despite facing competition from emerging memecoins like Dogwifhat (WIF), PEPE, and Bonk, SHIB continues to attract attention. Historically, whales have taken advantage of price dips to accumulate tokens at discounted prices, and this trend is expected to continue through the “buy-the-dip” strategy.
According to CoinGlass data, the open interest in Shiba Inu has increased by 1.32% to $35.66 million, indicating a growing interest among investors in the cryptocurrency. Although Shiba Inu’s Relative Strength Index (RSI) currently sits at 31, which suggests oversold territory, some analysts anticipate a potential rally in the near future.
Investor behavior in the cryptocurrency market is influenced by macroeconomic factors, such as a reduced appetite for risk. In such circumstances, investors tend to opt for large-cap coins like Bitcoin and Ethereum. Additionally, there is increased interest in crypto ETFs, which has drawn attention to Ethereum, Solana, and Litecoin, with the possibility of launching such products. In line with this, the Shiba community has expressed a desire for a SHIB ETF to be launched soon.
In the short term, SHIB has set its sights on reaching $0.00012, while keeping the all-time high of $0.00008616 in view.