Shibarium's Impact: SHIB Price, Burn Rate & Future
Shiba Inu's Layer-2 solution, Shibarium, has generated significant buzz in the crypto community since its recent launch. This analysis examines Shibarium's impact on Shiba Inu (SHIB) price, its burn rate, and the future outlook for this prominent meme coin.
Shibarium's Novel Structure: Enhanced Security?
Unlike traditional Layer-2 (L2) rollups, Shibarium operates as a sidechain built on Ethereum (ETH). A key developer highlighted that this design, with its own validators and checkpoints, leverages Ethereum's security through regular anchoring. This approach contrasts with optimistic rollups, which typically involve longer withdrawal periods. The developer stated, “Sidechains operate their own validators and checkpoints/milestones while leveraging Ethereum’s security via periodic anchoring. In my view, this structure is more secure than optimistic rollups, which impose a seven-day challenge period for withdrawals.” The ShibOS system also incorporates multiple security measures, including a hybrid optimistic/ZK-based settlement model, aiming to improve the efficiency of optimistic rollups. Codeum offers smart contract audits and tokenomics consulting to ensure the security and robustness of similar projects.
Network Activity and Value Secured
Data from L2Beat reveals Shibarium's total value secured has fluctuated. While it peaked at over $6.4 million in December 2024, it has since decreased to approximately $3.5 million. This early surge in mid-2024 reflects increased adoption, followed by a period of stabilization.
Source: L2Beat
Soaring Shiba Inu Burn Rate
The Shiba Inu burn rate has experienced a dramatic 786.90% increase in the past 24 hours, with over 31,010,900 SHIB tokens burned. This surge suggests heightened network activity and a decrease in the circulating supply. If this trend persists, it could positively influence SHIB's long-term price stability. Codeum provides tokenomics consultations to help projects design effective and secure token emission and burning mechanisms.
Shiba Inu's Price Performance
At the time of writing, SHIB is trading at $0.00001751, reflecting a 0.51% daily decline. Technical analysis reveals the 50-day moving average at $0.00002168 and the 200-day moving average at $0.00001929, suggesting bearish sentiment. Holding the $0.00001700 support level is crucial for stabilization; otherwise, further price drops are possible. Breaking above $0.00002200 could signal a potential recovery.
Source: TradingView
Despite the current bearish pressure, increased Shibarium adoption and a sustained burn rate could potentially reverse this trend. Partner with Codeum for comprehensive security and development solutions to build a secure and successful blockchain project.