- Shiba Inu’s burning rate has witnessed a surge of 6,000% following heightened activity on the Shibarium network.
- SHIB continues to struggle to break out of its bearish trend, which has led to its drop in ranking among the top twenty cryptocurrencies.
The largely celebrated Shiba Inu burn has surged, reaching 6,000% in the past 24 hours. This highlights heightened activity on the Shiba Inu and its associated Shibarium network. This surge coincided with a favorable price change after a poor weekly performance.
The recent burn brings the total burnt tokens from the initial supply to 410,727,066,276,659. Ideally, the burning mechanism is designed to reduce the total circulating supply supply. This attracts value to the remaining tokens, boosting prices. In the past, SHIB has seen the amount of tokens remain significantly lower than the total circulating supply. However, the development team promises increased quantity and frequency of the tokens.
The Shibarium network, the layer two protocol for Shiba Inu, has significantly increased the burning rate. Its adoption has driven increased BONE transactions, with part of its fees being swapped into SHIB, which is burnt.
Additionally, as Crypto News Flash reported, the Shiba community has proposed a new burning mechanism on Coinbase and Binance. As evident with LUNC on Binace, the initiative could see billions of tokens burnt.
At the time of writing, SHIB is exchanging for $0.00001731 after a 4% negative change in the past 24 hours. The drop has seen the altcoin slip lower in its market rankings, dropping to 14th place with a $10.2 billion market cap.
Despite its recent poor performance, SHIB remains the second-best memecoin in the market. However, experts have predicted it could flip Dogecoin (DOGE) into the largest memecoin. For context, DOGE is ranked 10th with a market cap of $17.9 billion.
Renewed interest from whales is bolstering a new bullish outlook for SHIB. Despite facing competition from up-and-coming memecoins such as Dogwifhat (WIF), PEPE, and Bonk, interest around SHIB has persisted. Historically, whales have taken advantage of price dips to accumulate tokens at discount prices. This trend is expected to persist through the “buy-the-dip” strategy.
According to CoinGlass data, Shiba Inu’s open interest climbed 1.32% to $35.66 million, suggesting increased investor interest in the cryptocurrency. While Shiba Inu’s Relative Strength Index (RSI) sits at 31, indicating oversold territory, some analysts predict a potential rally in the near future.
Macroeconomic factors, such as reduced investor risk appetite, dictate investor behavior. With low appetite, investors opt for large-cap coins such as Bitcoin and Ethereum. Additionally, interest in crypto ETFs is heightened, drawing interest in Ethereum, Solana, and Litecoin, which could have such products launched. In the same line, the Shiba community has called for the launch of a SHIB ETF soon.
SHIB is eyeing $0.00012 in the short term, with the $0.00008616 all-time high remaining in view.
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