Shiba Inu, the world’s second-largest meme-coin, is one of the most talked about cryptocurrencies in light of its origin story and the market frenzy it brought when it was first introduced in 2021.
The stories of SHIB continue this year as crypto enthusiasts still believe in this coin. The latest news about the Layer-2 network and SHIB burn rate have increased investors’ confidence in the future of this crypto.
Will SHIB price go up? Let’s explore what the recent burn news means for holders.
Many argued about the lifespan of this meme coin, and some believed it was a well-designed pump-and-dump fraud scheme in light of the lack of utility of the SHIB token. However, 2023 brought some good news for crypto communities, starting the year with a noticeable price jump of around 75% in 30 days.
The introduction of a layer-2 blockchain network is probably the most exciting news for SHIB holders, promising serious development to the ecosystem and potentially more use cases for the meme coin.
The Shibarium L2 network was launched in August 2023, carrying an interesting roadmap and SHIB coin burn plans for further developing the token and allowing more dApps to emerge on the Shibarium network.
Shiba Inu burn events have grabbed headlines because usually taking tokens out of circulation and dropping the supply level leads can potentially boost the coin price.
An increase in burn events started in September, when over 160 million tokens were taken out of circulation, with another 150 million burnt tokens on 30 September, causing a slight SHIB jump of 3% in a couple of days.
The soaring burn action was traced by increased activity in several whale wallets, outflowing a massive number of SHIB tokens from the market.
This trend took over again around the end of October when over 140 million tokens were sent to dead addresses and taken out of circulation, sending the burn rate to over 500% in 24 hours. Another 60 million tokens were burnt the next day, marking the highest burning activity for Shiba Inu this year.
The increasing burn activity saw the token price rise by 5.5% in 24 hours between 24 and 25 October, marking a new bullish movement for the meme coin.
As of writing, the total number of burnt tokens is over 410.6 billion, leaving the current circulation rate at almost 580 billion tokens.
The burn rate slowed down by 26 October, with only 27 million tokens burnt overnight, dropping the burn rate to only +3.8% in the last 24 hours.
SHIB price crossed $0.0000080 for the first time in 60 days, exactly after the last price rally in August when Shibarium was launched. The soaring Shiba Inu price reached new levels after a 7.2% increase over the 48 hours and an astonishing 10% in 24 hours.
The increasing trend still prevails with a 73% Fear & Greed Index score, marking a new Shiba Inu bullish run. Let’s take a look at the SHIB coin forecast.
We track the token price using the exponential moving averages indicator to predict the potential trend. We use the EMA over three time periods: 10 days, 50 days and 200 days.
Comparing the 10-day EMA with the 50-day, we noticed that the 10-day line was crossing the 50-day up and down multiple times, hinting at a possible trend anytime.
However, on 21 October, the 10-day EMA line crossed over the 50-day and continued its upward trend for five days straight. This positive tick in SHIB took the price from $0.0000070 to $0.0000080. But for how long?
The last time the 10-day indicator crossed over the 200-day trend was at the end of July 2023, on the last bullish action in SHIB. Now again, the 10-day line crossed over the 200 EMA line on 23 October and keeps moving up and away from it, marking a potential price rally over the $0.0000080 threshold.
At the beginning of 26 October, and within the last 8 hours, SHIB’s price jumped from $0.00000739 to $0.00000813, marking a +3.2% price growth with all market signals indicating to hold Shiba Inu tokens as much as possible.
It is unknown for how long this bullish movement will continue. However, the last time we witnessed a similar activity in July, it lasted for 30 days. If prices keep pushing upwards at the same rate, the aim now is to cross the $0.0000100 threshold before aiming for $1.
The SHIB token price has gained much attention since the summer of 2023, triggered by an increased SHIB burn rate and several network updates that can finally bring utility to the second-largest meme coin.
The launch of the Shibarium increased traders’ confidence in the cryptocurrency’s future, with more dApps projects possibly to land on its layer-2 network. These events boosted the currency price to cross the $0.0000080 threshold, and it is probably only a matter of time before the rally hits $0.0000100.