One of the most important details for the price of cryptocurrencies is the circulating supply. This is especially critical for meme coins. Meme coins, which entered the market with a trillion-dollar maximum supply, are striving to burn their own tokens by releasing their products in order to meet the natural user demand. Shiba Coin is the largest cryptocurrency that can implement this.
A few months ago, there was a significant expectation among investors regarding token burns until the launch of Shibarium. Experts who calculated the burn performance for the mainnet based on the demand during the testnet process had stated that it could reach a burn of $40 million per week. However, due to the decreasing interest in layer2 solutions after the mainnet, the goal of $40 million burn has fallen through.
According to the Shibburn website, Shiba Inu has experienced a 535% increase in daily burning rate. 8.1 million SHIB tokens were burned daily. In the past week, a total of 260 million burns were carried out. These burns, which were made in 66 transactions, indicate that the Shiba Inu team has not yet reached the desired levels.
In summary, the price of Shiba Inu will not be fueled by token burn motivation and Shibarium excitement for some time. If applications that will truly receive demand on the Shibarium network are released in the coming months, the situation may change. For now, the layer2 solution seems to have been left behind due to lack of interest, just like other hype projects (Shib Metaverse, NFT, Shib DeFi).
Investors witness massive rallies of meme coins in bull markets. Shiba Coin, which erased its zeros from the first quarter of 2021 until its listing on Binance, has lost its former excitement. At the time of writing, it is trading at 0.00000818 dollars on the Binance exchange.
On the weekly chart, it seems to be reversing from the local low on October 16th, but the $0.0000084 region is becoming challenging for the price. Further increases will be possible with closings above this region. In a possible rally, targets of $0.00001 and $0.000011 can be tested. To reverse the momentum gained in April 2022, $0.000015 needs to be secured as support. In conclusion, it is difficult to talk about a clear comeback for SHIB at the moment.
In the short term, it is important that $0.0000081 is reclaimed. On the four-hour chart, a retest of $0.0000084 may be seen again. However, since this region has proven itself for profit-taking, it will likely be considered by bears for entering short positions.