Shiba Inu (SHIB) developers have launched the Shibarium Layer-2 on the native ‘Puppyscan’ testnet. The community anticipates that Shibarium will significantly increase the Shiba Inu token burn rate. How will SHIB price react to these changes?
The Shibarium Layer-2 protocol has emerged as the current topical product development in the Shiba Inu ecosystem. So far, the beta testing has delivered positive results in the initial weeks.
Shibarium Beta Testing Gets Off on Positive Note
According to on-chain data from Shiba Inu’s native Puppyscan testnet, the total transaction count on Shibarium’s “Puppyscan” has crossed the crucial milestone of 30 million transactions. Notably, it has consistently maintained an average of 260,000 daily transactions.
Leading Shiba Inu developer Shytoshi Kusama has lauded the positive start declaring the “summer of Shibarium” via their official Twitter bio. The chart above shows that the project has been well-received within the SHIB community.
More than 17 million Shibarium wallet addresses have already been created in terms of adoption. If this acceptance rate evolves to the mainnet, the SHIB price and network activity could enter a new gear.
Analyst Predicts Monthly SHIB Token Burn Will Rise to 5 Trillion
In further confirmation of the bullish sentiment surrounding Shiba Inu’s recent product development moves, a popular SHIB analyst has predicted that Shibarium could spur adoption and raise the SHIB burn rate to 5 trillion tokens monthly.
The current market price of $0.0000077 would see $40 million worth of SHIB tokens destroyed monthly. And importantly, at that burn rate, the current SHIB in circulating supply will be cut in half within 5 years.
If strategic investors buy into this audacious SHIB token burn prediction, the demand for SHIB could gradually skyrocket in the coming weeks.
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Demand Is Fast-Outpacing Supply Across Various Exchanges
According to the aggregate order books of exchanges, SHIB demand currently outweighs the supply.
The chart below shows that potential investors have placed active orders to buy 1.4 trillion SHIB tokens. But only 1.06 trillion tokens have been put up for sale around the current prices.
The Exchange On-chain Market Depth shows the price distribution of active buy and sell orders from traders across various exchanges. When the “Bid” side is significantly higher than the “Ask” side, as seen above, it indicates that more traders are currently looking to buy than sell.
Currently, there is a market shortage of nearly 3 trillion SHIB. Excess demand typically puts upward pressure on the price of an asset. And if the Shibarium adoption and network traction growth continues, this could be a sign of things to come.
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SHIB Price Prediction: $0.00001 in Focus
Considering the media hype and visible on-chain traction building up around the Shibarium launch, $0.00001 seems a realistic price target for SHIB.
But currently, the bulls could face significant resistance around the 0.0000085 mark. 11,500 investors that bought a total of 6.55 trillion SHIB tokens at the minimum price of $0.000008 could trigger a pullback.
If that critical resistance level folds as expected, then the Shiba Inu token burn expectation could power the SHIB price above $0.000010.
Still, the Shiba Inu bears can overturn the bullish narrative if SHIB breaks below $0.000007. But as seen above, some of the 129,390 addresses that bought 52 trillion SHIB tokens at the maximum price of $0.000008 could offer some support.
But if the bears pull that support level apart, the Shiba Inu could drop toward 0.000006.
Disclaimer
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