Crypto: These Indicators Announce the Return of Shiba Inu
Currently losing momentum, Shiba Inu, once in the spotlight, has fallen to the 15th place among cryptocurrencies in terms of market capitalization. But do not despair, SHIB fans, as promising signs could herald an imminent revival. Let’s break down the key elements that could once again propel Shiba Inu to the top.
The mystery of the burn: How SHIB is reinventing itself
Since the implementation of the burn mechanism in 2022, the Shiba Inu team has been striving to reduce the massive supply of SHIB in circulation. This process involves sending SHIB tokens to a null address with each transaction, thus making the remaining tokens rarer.
Just in recent days, the burn rate has exploded with about 60 million tokens destroyed in 24 hours, a 500% increase compared to July 22.
More than 41% of the initial supply has already been burned, leaving about 583 trillion SHIB in circulation, according to Shibburn.
This initiative aims to increase the value of the remaining tokens, provided the demand remains constant or increases.
According to current data, this mechanism could give the much-needed boost to SHIB’s value. However, its success depends on a delicate balance between supply and demand.
Crypto and Strategy: The Great Migration of SHIB
Another positive sign for Shiba Inu is the exchange netflow. Over the past 30 days, SHIB outflows from centralized platforms have far exceeded inflows, indicating a shift toward self-custody methods.
This means less immediate selling pressure, which is generally good for SHIB’s price.
Recall that a similar movement last March led to a spectacular surge in Shiba Inu’s crypto valuation, with a three-digit increase in just a few weeks.
Meanwhile, open interest in SHIB derivative contracts reached over $30 million last week, a monthly record. This shows increased participation from traders, often a precursor to increased volatility and significant price movements.
The progress of Shibarium, a layer-2 scalability solution on Ethereum, further adds to the optimism. Since its launch, it has processed more than 400 million transactions and produced more than 5.5 million blocks, strengthening the Shiba Inu ecosystem by improving transaction speeds and reducing costs. (Source: Shibarium.shib.io)
Despite the current challenges, promising elements suggest that Shiba Inu might rebound. The burn mechanism, token movements away from centralized exchanges, and increased open interest are factors that could favor a bright future for SHIB. The speculations around a spot ETF might also have an impact.
