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- The rate of Shiba Inu (SHIB) burn continues to spike amid notable network developments led by Shytoshi Kusama geared towards adding real-world utility to the second-largest meme coin.
- Amid mainstream adoption of the crypto market, Shiba Inu has been favored by institutional investors due to its vibrant global trading community and future growth prospects after the successful launch of the Shibarium network.
The launch of the Shibarium layer two scaling solution on the Shiba Inu (SHIB) network has undeniably fueled the mainstream adoption of the second-largest meme coin ecosystem. As of reporting time, more than 25.3 million BONE had been staked by the 12 validators and dozens of decentralized financial ecosystems led by decentralized exchanges (DEX) already running on the Shibarium network.
According to market aggregate data provided through Defillama, the Shibarium network had around $705k in total value locked (TVL) with some of the notable DeFi platforms including MarSwap, ChewySwap, DogSwap, and PunkSwap, among many others.
Consequently, the rate of Shiba Inu burned in the recent past has accelerated amid heightened altcoin speculation on the end-of-year rally. According to aggregate data provided by Shibburn, about 101 million SHIB were sent to the null address in the past 24 hours leading to Friday, November 03. However, lead Shiba Inu developer Shytoshi Kusama recently noted that the Shibarmy should not expect a magic burn rate without real use cases fueled by the Shibarium network.
Shytoshi added something else today:
About $SHIB burns 🔥#Factsmatters pic.twitter.com/sYRg5iD3Ok
— 𝐋𝐔𝐂𝐈𝐄 | ✨Shib.io✨ (@LucieSHIB) November 1, 2023
Closer Look at Shiba Inu Network and the Market Picture
After a 14 percent rally in the past three weeks, Shiba Inu price is fast approaching the apex of the macro triangle formation that could yield an imminent breakout in the coming few weeks. Moreover, the weekly Relative Strength Index has approached 50 from the oversold area amid a possible double bottom of the bear market.
The macro bear outlook on the second largest meme coin will be invalidated after the bulls recover the weekly 200 Moving Average (MA) as a support level. Moreover, Shiba Inu’s daily trading volume is still relatively small compared to 2022 before the FTX implosion.
Trading around $0.00000775 on Friday, Shiba Inu had a market capitalization of about $4.5 billion and a 24-hour average trading volume of approximately $158 million. Shiba Inu has been adopted by most institutional portfolios including by Robinhood Markets and holds a notable percentage, hence instilling confidence in the meme coin after the downfall of SafeMoon (SFM). Moreover, the Shiba Inu network faces immense competition from emerging meme coins like PEPE, and Floki that have registered significant growth in the recent past.
Meanwhile, Kusama has indicated that Shibarmy should ignore the constant FUDs (fear, uncertainty, and doubt) as they push potential investors and partners away from the Shibarium. In the long term, Kusama highlighted that the Shibarium network needs a Decentralized Autonomous Organization (DAO) and a Shib Naming Service to ensure sustainable development. The Shibarium’s SNS is expected to lower the web3 knowledge needed to operate DeFi protocols, thus ensuring seamless mainstream adoption.
