Find out what could trigger a new SHIB resurgence in the near future.
SHIB (SHIB), the second largest #meme coin by market capitalization, has been underperforming lately, with its price falling 9% in a week (Coingecko data). The following lines discuss some key factors and indicators of a possible new renaissance.
the SHI team introduced a burn-in mechanism in 2022 to reduce the huge number of coins in circulation. This process sends SHIBs to a zero address for every transaction. This increases scarcity and could theoretically increase the value of the remaining tokens (assuming demand stays the same or increases).
In recent days, the rate of token burn-in has skyrocketed. Data shows that about 60 million tokens have been destroyed in the last 24 hours, which is 500% more than as of July 22.
More than 41% of the initial supply has already been burned, with about 583 trillion #SHIB tokens in circulation (as of this writing).
Another factor worth mentioning is the net exchange flow of SHIB tokens. Over the past 30 days, outflows have far exceeded inflows, indicating a shift from centralized platforms to self-sustaining vaults. This is generally considered bullish for prices, as it relieves immediate selling pressure. A similar trend was seen in early March, when Shibaura's valuation #rose by triple digits in just a few weeks.
Open interest (the total number of open contracts on derivatives such as futures and options) on Shibaura topped $30 million last week, reaching a one-month high.
An increase in open interest usually indicates an increase in the number of market participants, which means more traders are involved in trading. This is often a precursor to increased volatility and sharp price movements in either direction.
the main goal of #Shibarium is to contribute to the Shibarium ecosystem by reducing transaction costs, increasing speed and scalability.
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