Token burnings, which aim to reduce circulation supply, have significant effects on the prices of altcoins. Particularly for meme coins with massive supplies, burnings have become a tool to keep communities engaged. The latest developments for the second-largest meme coin indicate a significant burning.
Shiba Coin
The Shiba Inu ecosystem took a significant step towards expansion with the introduction of the Shibarium Layer-2 protocol. The beta testing has yielded positive results in the initial weeks. According to on-chain data from the local Puppyscan testnet of Shiba Inu, the total transaction count on Puppyscan reached a milestone of 30 million transactions.
Shytoshi Kusama, the lead developer of Shiba Inu, praised the positive start by announcing the “Shibarium post” through his official Twitter bio. The above graph indicates that the project has been well received within the SHIB community.
Shiba Coin Burning and Future
With over 17 million Shibarium wallet addresses created, the Shiba Coin ecosystem will have made an impressive start if the same interest continues on the mainnet. Of course, this could significantly contribute to the increase in the SHIB price.
A popular SHIB analyst highlighted the bullish sentiment surrounding Shiba Inu’s recent product development moves, predicting that Shibarium could encourage adoption and increase the monthly SHIB burn rate to 5 trillion tokens. Considering the current market price of $0.0000077, this translates to a monthly burn of $40 million.
Furthermore, with this burn rate, the circulating supply of SHIB will be halved within five years. If strategic investors buy into this bold SHIB token burn prediction, the demand for SHIB could gradually increase in the coming weeks. As you know, in cryptocurrencies, expectations often outweigh events, and a monthly burn of $40 million could pave the way for a massive price surge. However, for this to happen, the demand during the testnet phase will need to transition to the mainnet.
On the price front, bulls are currently unable to break the resistance at $0.0000085. If demand increases due to burn expectations, the rising demand could eliminate the resistance and initiate a new rally towards $0.00001.
