- Shibarium’s performance was commendable as it reached another milestone.
- SHIB’s stats and market indicators were also bullish on the memecoin.
Shiba Inu [SHIB] is known for its burning activity, which plays a vital role in the utility of the token. Not only does it highlight its deflationary features, but it also plays an important role in shaping investor sentiment.
Read Shiba Inus [SHIB] Price prediction 2023-24
But is the fire enough for the token to take it to the moon? A look at SHIB’s price action might conclude that the opposite is true. However, SHIB’s popularity and upcoming updates may change things.
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 talk about SHIB combustion and the role of Shibarium.
According to the tweet, Shibarium significantly impacts the Shib ecosystem by introducing a combustion mechanism that reduces Shib supply. When users transact on the network, the basic rate is locked into a Shibarium contract, while the priority rate is paid to validators.
The basic rate is divided, with 70% being burned and 30% reserved for network maintenance.
However, the press time data looked worrying. According to SHIBBURN, Shiba Inu’s burn rate had dropped by more than 80% in the past 24 hours.
Source: SHIBBURN
Does the burn rate SHIB actually help?
SHIB’s burn rate has always been high, but its effects have yet to show up on the charts. From CoinMarketCap, SHIB was down 5% in the past seven days. At the time of writing, it was trading at $0.000007584 with a market cap of over $4.4 billion, making it the 18th largest crypto by market capitalization.
While SHIB’s price action was not bullish, however, the ecosystem witnessed growth. Shiba Inu’s Shibarium has reached another milestone. According to Puppyscan, Shibarium’s total transactions were about to hit 26 million, which is an achievement.
Source: Puppy scan
SHIB is under pressure
As the Shibarium testnet rose, SHIB’s delivery distribution also changed dramatically. According to Santriment’s chart, SHIB‘s supply on exchanges fell significantly, while supply outside exchanges increased.
Such an episode means that the buying pressure on the memecoin is increasing, which is a bullish signal. However, it was interesting to see that the total number of SHIB holders registered a decline over the past seven days.
Source: Sentiment
Shiba Inu now has competition
While Shibarium is enjoying huge success, SHIB has competition just around the corner as new tokens such as Pepe [PEPE] and PEPE 2.0 come on the market. Aside from that, SHIB has also witnessed a fall in its market cap, drifting off the list of the top 20 cryptos.
The second generation of the ePEPE token was up more than 1000% just after launch. Will SHIB, the second largest memecoin, be able to maintain its position?
How many Worth 1,10,100 SHIBs today?
Shiba Inu bulls don’t let the bears win
Take a look at SHIBThe daily chart revealed that the bulls led the market, according to the MACD indicator. In addition, the Shiba Inu’s Relative Strength Index (RSI) gained upward momentum.
The memecoin’s Money Flow Index (MFI) also followed the same growth path, increasing the likelihood of a sustained upward trend. However, the ribbon of the exponential moving average (EMA) was bearish – the 20-day EMA rested well below the 55-day EMA.
Source: TradingView