While the significant whale activity is a bullish development, is it enough to sustain the memecoin’s rally?

Shibarium is an alternative for users to carry out different transactions quickly and at a very low cost. The arrival of this platform to Shiba Inu would allow investors to start making movements without any problem or, directly, invest in the currency itself.

Shibarium has been making headlines ever since Shytoshi Kusama, the founder of the Shiba Inu ecosystem, teased the project in December. Prior to this, SHIB, the ecosystem’s native token, gained 27% in the last 30 days.

This put the token in the eyes of the whales, which landed it on their list of the top five most held tokens. According to whale tracker Whale Statistics, the average amount held by whales is 178 billion SHIB, valued at $1.8 million.

The Essence of Shibarium Release

There is no absolute date as to when the Shibarium update will be released to the public, but the beta version of the update is said to be close to its release date. This would give SHIB holders an idea of ​​what the Layer 2 network solution for Shiba Inu would do.

Based on the latest ShibaSwap blog post, the beta release will give the community an idea of ​​how the various concepts behind the update will work. From lower gas fees to how validators and delegators contribute to the ecosystem, community members would have insight into how these roles intertwine to keep the ecosystem running at peak performance.

The Shibarium update was already underway when the Shiba Inu development team released Shiba Eternity Back on October 6 last year. The Shiba burn mechanism was also implemented in 2021, making the SHIB token deflationary.

The current Shiba Inu burn rate at the time of writing is 50% according to ShibBurn, a website focused on tracking the consumption rate of the SHIB token. When the Shibarium beta release occurs, there may be a higher-than-expected consumption rate, especially in the actual ecosystem release.

What Does this Mean for SHIB?

The SHIB token is currently trading at $0.00001052 and has been trying to consolidate above the support level of $0.00001038. At the current token price, it may face a stronger correction in the short to medium term. This is especially true as the bears are about to retest the current support level.

If the token continues to maintain its momentum, it could retest the $0.00001192 price resistance which, if broken, could regain ground lost when the market crashed after the FTX fall from grace.

With Bitcoin breaking its $21,000 resistance level, as well as SHIB’s high correlation with BTC, Shiba Inu could continue to follow the coin’s momentum above to higher highs in the coming days or weeks.

By Audy Castaneda

LEAVE A REPLY

Please enter your comment!
Please enter your name here