Growing Uncertainty in the Meme Coin Market
At the moment, the meme coin market is marked by growing uncertainty, as leading tokens like Shiba Inu (SHIB) and Dogecoin (DOGE) have been unable to break above stiff resistance levels. Shiba Inu now trades at $0.00001203 while its trading volume has dropped by 21.95%. Despite this, the token’s market capitalization has gone up by a moderate 2.89% in the last 24 hours to $7.1 billion.
As previously noted by CNF, the SHIB Magazine released a bold forecast estimating SHIB’s value could surge to $0.000167, representing a 14-fold increase from its present level. Here are three reasons why SHIB’s next bull run is on the horizon.
1. A Blast in SHIB Burn Rate
Shiba Inu has seen its burn rate increase by 3,255.93% over the past 24 hours. Quite remarkably, 28,448,177 SHIB tokens were sent to the burn wallet during the period, with 10,840,965 being burned an hour ago. As per Shibburn, over 410.7 trillion SHIB tokens have now been removed from circulation.
This new burn spike represents a concerted effort on the community’s part to rein in SHIB’s circulating supply. Burns may not necessarily lead to an explosion in price, but they definitely increase scarcity, which is one of the key drivers that can create value if demand stays constant or continues to grow.
2. Shibarium’s Rapid Growth
Shibarium, Shiba Inu’s Layer-2 blockchain platform, continues to grow after hitting the 10 million block milestone, now standing at 10,531,769 blocks. The daily transactions of the network are surging past 4.78 million, while a total of 1,071,758,767 transactions have been sent on 197,969,471 wallet addresses, according to the Shibarium explorer.
Admired for its cost efficiency, Shibarium is an increasingly sought-after platform for decentralized apps (dApps) and places SHIB even further in the wider crypto sphere.
Even Bitcoin advocate Jeremie Davinci joined in with praise for the initiative and stated, “I like Shiba Inu, as you know, and I think it will do relatively well in this cycle, but it may not go as high as you expect. I think Shiba Inu has a lot of utility now that they have Shibarium, and basically, it’s a chain that you can actually run all kinds of applications.”
Adding to this, BONE, the governance token and gas fee token for Shibarium, is also showing strength, currently priced at $0.281483, up 16.72% in the latest trading.
3. Dominance of Exchange Outflows
SHIB’s exchange netflows are currently dominated by outflows, indicating that investors are taking their tokens off centralized exchanges and into self-custody. This is a typical bullish sign, as it points to decreasing near-term selling pressure and long-term holding preference on the side of investors.
At the same time, data from the derivatives market reveal a substantial growth in activity. Trading volume has risen by 55.94%, reaching $166.83 million, which reflects higher interest and activity on the traders’ part. Additionally, open interest, representing the number of derivative contracts outstanding, has grown by 4.34%, reaching $117.11 million.