Key Takeaways:
- Shibarium’s Burn Rate: A 786% increase in the burn rate is fueling the deflationary pressure on SHIB, which could support its long-term price stability.
- Price Levels to Watch: SHIB’s price is currently testing key support at $0.00001700. A break above $0.00002200 could signal a recovery.
- Shibarium’s Impact: Shibarium’s growing adoption and security improvements could help stabilize SHIB’s price and reduce circulating supply.
Shiba Inu (SHIB) is experiencing a surge in its burn rate, with a recent 786% increase in the last 24 hours. This significant uptick in token burns comes as the Shibarium Layer 2 solution gains momentum, driving adoption and enhancing network activity. This surge in SHIB burns not only reduces the circulating supply but could also have a lasting impact on SHIB’s long-term price stability.
What Is Shibarium and How Does It Impact Shiba Inu?
Shibarium, Shiba Inu’s Layer 2 solution, has been a game-changer for the meme coin‘s ecosystem. Recently listed by L2 Beat, Shibarium operates as a sidechain built on Ethereum, distinguishing itself from conventional L2 rollups by offering a more secure and decentralized structure.
Unlike centralized rollups, Shibarium uses its own validators and checkpoints while anchoring periodically to Ethereum for added security. This hybrid design is intended to solve the inefficiencies of optimistic rollups, offering faster transaction times and greater security for Shiba Inu’s decentralized applications (dApps) and token transfers. This has contributed to Shibarium’s increasing adoption and growing confidence in its ability to scale Shiba Inu’s ecosystem.
Shiba Inu Burn Rate Skyrockets: What Does It Mean?
In the last 24 hours, the Shiba Inu burn rate has seen a staggering 786.90% increase. Over 31 million SHIB tokens were burned in this short time, indicating heightened network activity and an increasingly deflationary token model. The sustained burn rate could lead to reduced circulating supply, potentially exerting upward pressure on SHIB’s price in the long term.
The burn mechanism is central to Shiba Inu’s strategy for price stability. As more transactions occur on Shibarium, SHIB tokens are burned, further reducing the total supply in circulation. This could prove beneficial for SHIB’s value, especially as more users and developers adopt Shibarium for its lower fees and faster transaction speeds compared to Ethereum’s main net.
Shiba Inu’s Price Action: Will Shibarium’s Success Reverse the Downtrend?
Shiba Inu’s price has recently been on a downward trajectory, trading at around $0.00001751, marking a minor 0.51% daily decline. Despite this, key technical indicators suggest that SHIB is at a critical juncture. The 50-day moving average sits at $0.00002168, while the 200-day moving average is slightly lower at $0.00001929, both indicating a bearish trend.
However, the growing adoption of Shibarium, along with the surge in SHIB burns, could turn the tide for Shiba Inu. The $0.00001700 support level will be crucial in determining whether SHIB can stabilize or face further declines. If SHIB manages to break above the $0.00002200 resistance, it could signal the start of a bullish reversal.
Shibarium’s Future: A Key Catalyst for SHIB’s Growth
As Shibarium continues to evolve and gain adoption, it will likely play a significant role in Shiba Inu’s price action. The increasing number of transactions on the L2 network, paired with the ongoing burn rate, could make Shiba Inu a more scarce asset, potentially leading to upward pressure on its price.
Shiba Inu’s community remains excited about the ongoing developments within the ecosystem, with many hopeful that Shibarium will be the catalyst for long-term growth. With over $6.4 million in value secured by Shibarium as of December 2024, the platform’s future looks promising, and it could provide the stability SHIB needs to break free from its current price struggles.
Shiba Inu’s future is closely tied to the success of Shibarium, and if the current trends continue, SHIB could see significant price movements in the near term.
