As the price of Shiba Inu has been underperforming recently, there have been significant indicators pointing towards a potential rally. One of the key factors is the substantial increase in daily active addresses for SHIB, which have surpassed 3,500, representing a 13% surge. This surge indicates a growing interest in the asset and suggests a potential rise in demand from investors.
Burning Mechanism and Supply Reduction
The team behind Shiba Inu has implemented a burning mechanism to reduce the circulating supply of the coin. Data shows that over 410 trillion SHIB tokens, approximately 41% of the maximum total supply, have been destroyed. This burning mechanism has shown impressive results, with the burn rate increasing by over 8,500%, resulting in the removal of approximately 86 million tokens from circulation in a single day. The team is working on simplifying the process with a transformative token burning mechanism to automate the system.
Shibarium Development and Potential Impact on Price
Another positive development for the price of SHIB is the progress of Shibarium, a layer-2 blockchain solution for Shiba Inu. Shibarium aims to improve the speed and lower the fees of transactions, ultimately setting Shiba Inu apart from its competitors. The platform has recently reached a significant milestone with total transactions surpassing 360 million and wallet addresses nearing the 1.5 million mark. This progress signifies the potential for a price boost for SHIB in the future.
Despite the recent underperformance of Shiba Inu’s price, there are several promising indicators that suggest a potential price rally. The increase in daily active addresses, the burning mechanism to reduce supply, and the development of Shibarium all point towards growing interest and demand for SHIB. Investors in Shiba Inu should keep an eye on these developments as they could significantly impact the price of the meme coin in the coming days and weeks.
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