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Shiba Inu (SHIB) Token Burn on the Rise: Will it Impact Prices Amid Bearish Sentiment?

Picture Source: BeInCrypto

Shiba Inu (SHIB), a meme cryptocurrency, has experienced a decline in price, but recent developments on the Shibarium Layer-2 (L2) network and increased SHIB token burns have raised hopes of a potential price rebound. As the cryptocurrency market faces bearish sentiment, the question arises: can the positive developments in the SHIB ecosystem counter the prevailing selling pressure and impact SHIB prices positively?

Shibarium Network Transaction Surge

Despite a turbulent start, the Shibarium L2 Network has witnessed steady growth. On-chain data from ShibariumScan tracker tool reveals that the network processed 73,600 transactions on September 1, but this figure steadily climbed to 202,900 transactions by September 11—an impressive 175% growth in less than two weeks.

The increase in network activity signals several positive developments. It suggests broader adoption and growing demand for services and tokens within the Shibarium network. Additionally, it reflects the improved efficiency and stability of the Shibarium network, which aligns with the Shiba Inu team’s pre-launch assertions.

SHIB Token Burn Rate on the Rise

In line with the Shiba Inu team’s predictions, the SHIB token burn rate has notably increased this month. Data from CryptoQuant indicates that the daily token burn count for Shiba Inu reached a two-month low of 10.06 million SHIB on September 1. However, as Shibarium network activity recovered, the burn rate surged by 700%, reaching 70.3 million SHIB by September 11.

Token burning involves permanently removing a quantity of cryptocurrency from circulation, reducing the total supply. A sustained increase in token burn rate can potentially drive up prices, provided demand remains stable.

Connecting Shibarium Network Growth and SHIB Burn Rate

The correlation between the growth of the Shibarium network and the simultaneous increase in SHIB burn rate between September 1 and September 12 suggests a connection between these trends. If this relationship holds, it could bolster investor confidence in the Shiba Inu project and provide support for SHIB prices, even amid the current bearish market conditions.

SHIB Price Prediction

Considering the on-chain indicators and the potential impact of the Shibarium network and increased token burns, it is possible that SHIB could find support around the $0.000007 level. Data on the purchase price distribution of current SHIB holders indicates that a significant number of investors acquired SHIB at this price.

However, if selling pressure prevails, SHIB’s price could drop further to $0.000005. On the other hand, if the memecoin market sentiment improves, the bulls might push for a significant upward movement towards $0.000010. Nevertheless, there are significant holdings at this price level, and a sell-off could lead to a price drop once again.

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Conclusion

The recent developments in the Shibarium network and the increased SHIB token burn rate hold promise for Shiba Inu (SHIB) prices. While the cryptocurrency market faces bearish sentiment, the positive indicators suggest the potential for price stability and even a rebound. However, as with all cryptocurrencies, price movements are subject to market dynamics, and investors should exercise caution and conduct thorough research before making decisions.

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