- Shibarium’s performance has been commendable as it reached a new milestone.
- SHIB’s metrics and market indicators were also bullish on the memecoin.
Shiba Inu [SHIB] is known for its burn activity, which plays a critical role in the token’s utility. Not only does it emphasize its deflationary characteristics, but it also has an important role in molding investor sentiment.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
But is the burn enough for the token to take it to the moon? A look at SHIB’s price action might infer the opposite to be true. However, SHIB’s popularity and its upcoming updates could turn things around.
A look at the Shiba Inu ecosystem
LUCIE, a popular Twitter account that posts updates related to the Shiba Inu ecosystem, recently posted a tweet talking about SHIB burn and the role of Shibarium.
As per the tweet, Shibarium significantly impacts the Shib ecosystem by introducing a burning mechanism that reduces the supply of Shib. When users make transactions on the network, the base fee is locked into a Shibarium contract, while the priority fee is paid to validators.
The base fee is divided, with 70% burned and 30% set aside for network maintenance.
However, the press time data looked concerning. As per SHIBBURN, Shiba Inu’s burn rate had declined by over 80% in the last 24 hours.
Source: SHIBBURN
Is the burn rate actually helping SHIB?
SHIB’s burn rate has always been high, but its effects have not yet been shown on its charts. As per CoinMarketCap, SHIB was down by 5% in the last seven days. At the time of writing, it was trading at $0.000007584 with a market capitalization of over $4.4 billion, making it the 18th largest crypto by market capitalization.
However, though SHIB’s price action was not bullish, the ecosystem witnessed growth. Shiba Inu’s Shibarium has once again reached a new milestone. As per Puppyscan, Shibarium’s total transactions were about to reach 26 million, which is an achievement.
Source: Puppyscan
SHIB is under pressure
While the Shibarium testnet rose, SHIB’s supply distribution also changed drastically. As per Santriment’s chart, SHIB’s supply on exchanges declined substantially while its supply outside of exchanges increased.
Such an episode means that buying pressure on the memecoin is increasing, which is a bullish signal. However, it was interesting to note that the total amount of SHIB holders registered a decline over the last seven days.
Source: Santiment
Shiba Inu now has competition
Though Shibarium is making huge achievements, SHIB has competition around the corner as new tokens like Pepe [PEPE] and PEPE 2.0 enter the market. Apart from that, SHIB has also been witnessing a decline in its market cap, causing it to drift off the list of the top 20 cryptos.
The second generation of the ePEPE token had risen more than 1000% just after the launch. Thus, will SHIB, the second-largest memecoin, be able to hold its stance?
How much are 1,10,100 SHIBs worth today?
Shiba Inu bulls are not letting the bears win
A look at SHIB’s daily chart revealed that the bulls were leading the market, as per the MACD indicator. Moreover, Shiba Inu’s Relative Strength Index (RSI) gained upward momentum.
The memecoin’s Money Flow Index (MFI) also followed the same path of growth, increasing the chances of a continued uptrend. However, the Exponential Moving Average (EMA) Ribbon was bearish – the 20-day EMA was resting well below the 55-day EMA.
Source: TradingView
Credit: Source link
