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- After successfully transitioning Shibarium’s Puppynet from Goerli to Sepolia last month, Shiba Inu developers announced three manual burns in December followed by auto burns beginning this January.
- The rate of Shiba Inu burn is expected to significantly increase with the adoption of the Shibarium network which has more than $885k in TVL from a dozen of web3 protocols.
Shiba Inu, the second largest meme coin that has evolved into a utility coin, has significantly benefited from the notable adoption of the Shibarium layer two scaling solution. As of this report, Shibarium is used by about 12 decentralized exchanges (DEXs) with a total value locked (TVL) of nearly $1 million. The Shibarium network is expected to increase SHIB’s on-chain activity as more investors will benefit from fast transactions with low fees.
Closer Look at Auto Shiba Inu Burn
The Shiba Inu ecosystem has so far burned about 410 trillion SHIB, with the majority expedited by Ethereum co-founder Vitalik Buterin. Notably, Buterin received 50 percent of the initial SHIB supply and proceeded to donate 10 percent of his holding to the COVID-19 relief efforts in India and burnt the rest. Since then, the Shiba Inu community has been looking forward to an accelerated burn process to help increase the value of existing tokens.
Earlier last month, the Shiba Inu team published a post updating the community on the Shibarium’s Puppynet transitioning process from the Goerli to Sepolia. The blog post also included the new era of SHIB burn that entails automation to enhance efficiency and reliability.
The SHIB burn process, however, began with three manual burns managed by the official deployer wallet. Starting in January, the SHIB burn mechanism has evolved into an automated system, thus making the process more transparent and efficient.
“The future of Shibarium’s token burning mechanism looks promising. With the planned upgrades and the direct correlation between network usage and burning efficiency, the mechanism is expected to become a central component of Shibarium’s economic strategy. As adoption increases, so does the efficacy of the burn process, making Shibarium an attractive platform for users and investors alike,” the post noted.
SHIB Price Action and Market Outlook
After being trapped in a falling trend since October 2021, Shiba Inu bulls invalidated the bearish sentiments following a 78 percent spike during the fourth quarter of 2023. Moreover, Shiba Inu’s price on the weekly time frame has closed above the 200 Moving Average (MA) consistently in the past five weeks.
Additionally, the weekly Relative Strength Index (RSI) has been showing a bullish divergence since SHIB hit its bear market bottom. The SHIB bullish sentiment is also backed by a daily golden cross between the 50 and 200 MA. The second largest meme coin after Dogecoin has a market cap of about $5 billion and a daily trading volume of around $200 million.
According to the latest market data, SHIB price has gained about 3 percent in the past 24 hours to trade at $0.000009935
