SHIB Price Surges as Shibarium Burns Take Center Stage

Following the successful transition of Shibarium’s Puppynet from Goerli to Sepolia last month, SHIB developers have announced a strategic shift in their burning strategy. Three manual burns were executed in December, paving the way for the introduction of auto burns starting this January.

Anticipated with the adoption of the Shibarium network, the Shiba Inu burn rate is expected to increase substantially. The Shibarium network boasts over $885k in Total Value Locked from a dozen web3 protocols. It has become a key driver in this strategy.

Shiba Inu, evolving beyond its meme coin origins into a utility coin, has experienced significant benefits from the growing adoption of the Shibarium layer two scaling solution. Currently, Shibarium is integrated with approximately 12 decentralised exchanges (DEXs), accumulating a TVL of nearly $1 million.

This adoption is poised to enhance SHIB’s on-chain activity, providing users with expedited transactions at minimal fees.

Exploring the Automated Shiba Inu Token Burn

The Shiba Inu ecosystem has undergone a token burn of 410 trillion SHIB, primarily instigated by Ethereum co-founder Vitalik Buterin.

Initially receiving 50 per cent of the initial SHIB supply, Buterin donated 10 per cent to COVID-19 relief efforts in India. He subsequently burned the remainder. The Shiba Inu community has eagerly anticipated an accelerated burn process to enhance the value of existing tokens.

In a recent blog post, the Shiba Inu team updated the Shibarium’s Puppynet transition from Goerli to Sepolia. This introduces a new era of SHIB burn featuring automation for increased efficiency and reliability.

Initially, three manual burns were conducted by the official deployer wallet. However, starting in January, the SHIB burn mechanism has transitioned to an automated system, enhancing transparency and efficiency.

The post emphasised the promising future of Shibarium’s token-burning mechanism, highlighting its central role in the platform’s economic strategy.

With planned upgrades and a direct correlation between network usage and burning efficiency, the mechanism is poised to become a pivotal aspect of Shibarium’s appeal to users.

SHIB Price Momentum and Market Overview

Breaking free from a declining trend since October 2021, Shiba Inu bulls have negated bearish sentiments with a substantial 78 per cent surge in the fourth quarter of 2023. Notably, Shiba Inu’s price on the weekly timeframe has consistently closed above the 200 Moving Average over the past five weeks.

Furthermore, the weekly Relative Strength Index (RSI) indicates a bullish divergence since SHIB reached its bear market bottom. A daily golden cross between the 50 and 200 MA supports this optimistic outlook.

As the second-largest meme coin, trailing only Dogecoin, SHIB boasts a market capitalisation of approximately $5 billion. It has a daily trading volume of around $200 million.

As per the latest market data, SHIB’s price has witnessed a 3% gain in the last 24 hours, trading at $0.000009935.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.