Shibarium TVL surges: Impact on Shiba Inu’s burn rate, SHIB’s price

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  • Shibarium hit milestones in TVL and block production recently.
  • SHIB showed bullish signs as the burn rate picked up.

As a researcher with years of experience observing and analyzing digital assets, I can confidently say that Shibarium’s recent milestones are indeed noteworthy. The surge in TVL and block production have created a buzz within the crypto community, and rightfully so.

Shibarium has been making news by passing the milestone of 8 million blocks, along with a substantial increase in Total Value Locked (TVL), a notable development.

For Shiba Inu [SHIB] supporters, reaching this significant achievement sparks intense scrutiny on how Token Liquidity (TVL), token burns, and market trends impact each other.

Is a significant increase in TVL (Total Value Locked) likely to boost SHIB’s price rebound, or does its burn rate not have enough influence to sway market opinions positively?

Shibarium TVL sets new records

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The total value locked (TVL) in Shibarium has seen a significant increase, approaching nearly $5 million, according to information from DeFiLlama. Currently, the TVL stands at approximately $4.72 million, marking a new record high for the platform.

The surge indicated a growing trust among investors and an expansion of practical applications within the Shiba Inu community.

Historically, having more Total Value Locked (TVL) tends to lead to better liquidity and increased network activity, which can create a favorable environment for the value of tokens.

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This year, the Shiba Inu Layer 2 (L2) has outpaced its past performance milestones ahead of schedule, suggesting a rise in network usage and acceptance.

The influx of liquidity coincided with increasing transaction volumes.

Furthermore, our study of the network’s user activity showed a substantial spike, with active users jumping from 2,284 to 12,041—representing a staggering 427% growth.

The surge in our numbers stemmed primarily from an influx of new accounts, as data revealed a remarkable jump from 104 to 5,083, equating to a staggering growth rate well above 4,000%.

Shiba Inu’s burn rate shows progress

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As a keen analyst, I’ve been closely observing the Shiba Inu burn mechanism – a crucial part of their ecosystem. This mechanism is designed to decrease the token supply, thereby enhancing its scarcity. According to Shibburn data, more than a billion SHIB tokens have been incinerated in the past month alone.

Additionally, in the past day, more than 171 million were consumed, marking a staggering over 4,000-fold rise.

As an analyst, I observe that our burn rate is on a steady incline, but to align with Shiba Inu’s expansive circulating supply, it requires an equivalent accelerated increase in the burn rate for balance to be maintained.

Additionally, it was found that a decrease in token burns tended to correspond with an increase in market price. However, the influence of the burn mechanism itself seemed minimal unless other factors like heightened demand or wider market trends were present.

How SHIB has trended

SHIB’s price has shown robustness, surging approximately 7% in the past 24 hours to reach $0.00002726. The day’s graph indicates a bullish movement, bolstered by the MACD and RSI technical indicators.

At the current moment, the Relative Strength Index (RSI) stood at 67, moving slightly towards the overbought region. This trend suggests a possible short-term period of price stabilization or consolidation might be on the horizon.

At $0.00002009, moving averages show robust underlying strength, particularly the 200-day average which serves as a significant long-term barrier for potential growth. Meanwhile, the Bollinger Bands suggest increasing market volatility, mirroring the recent price escalation.

Although the increasing Total Value Locked (TVL) in Shibarium has fostered a beneficial overall market situation, the price movement indicates that Shiba Inu (SHIB) encounters substantial resistance at approximately $0.00003500. Overcoming this barrier is crucial for SHIB to maintain its positive trend.

Looking at the increasing Total Value Locked (TVL) on Shibarium, the ongoing token burn activities of Shiba Inu, and the market’s gradual recovery, there’s a hint of cautious optimism for SHIB’s future performance.

However, the impact of burns on price remained limited without substantial demand-side catalysts.

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2024-11-24 07:04