The official news release by Shiba Inu on Shibarium transaction burning $SHIB tokens was great for token loyalists. In fact, it’s been further revealed that up to 30% of the tokens supply is expected to be burned by the layer-2 technology. However great this will be for the token, it’s now unveiled one adverse effect. The Shibarium news turned the fiery 2023 SHIB Burn run, ice cold.
What likely happened?
It appears the SHIB Army, which is composed of hundreds-of-thousands of cryptocurrency users, may have formed a belief that Sibarium can burn everything themselves.
48 hours after the tweeted confirmation of new crypto-ecocystem’s ability, SHIBBurn tracker reported token burn numbers fell tremendously. In the two days prior, less than 4.9% of the new year’s 1-day high were burned; As January 2nd at least 187,892,965 $SHIB tokens were sent to the dead wallets for de-circulation.
The massive down turn in burning is not a positive.
Shibarium Technology being tested now?
Though the layer-2 technology and basis for a Shiba Inu ecosystem ‘should’ launch soon, it’s not live. There are speculative rumors that the recent burn of 200-800 tokens daily are from testing of the Shibarium network.
If the buzz turns to be true, perhaps Shiba Inu could launch the new technology before mid-year. Maybe even by March 31st, end of 1st quarter. This would be great for the token’s value in upcoming bull runs.
Shibarium does not mean $SHIB’s value would completely de-pair from the Bitcoin price trends however. To change the gravity of crypto-charts, the layer 2 technology and Shiba Inu token would need major crypto acceptance on a global level.
Increasing SHIB Burn’s Daily Average… Again
The sudden drop in burning needs to pick back up for overall appeal. The coin’s strong user support base and visible faith from consumers is what makes the meme coin so valuable, compared to others like Big Eyes or Tamadoge.
As once stated by crypto-enthusiast William Siveter, Shiba Inu is a rare case of meme cryptocurrency with brand value and equity. It has billions of dollars worth of market cap, which even topped household American name brands last year, at various peaks of the crypto market.
All of these achievements came before Shibarium, though it’s a debate on whether smart money or dumb money had more influence.
As long as community support for the SHIB Burn is low, it indicates a serious drop in brand value. Even in the current state of Global recession, the 100-million $SHIB Burn goal should be reached between the estimated quarter-million loyalists, members of the Shiba Inu army. The value of the ‘massive’ sum of tokens is only $843 currently.