Shiba Inu gears for 12% rally as ShibTorch burn portal goes live
- Shiba Inu’s Layer 2 Shibarium announced the launch of ShibTorch, a burn portal on Friday.
- Every transaction on Shibarium now contributes to token burn, per the announcement.
- SHIB eyes 12% gains, trades at $0.00001334 at the time of writing.
Shiba Inu (SHIB), the second largest meme coin in crypto, made key announcements this week. Shibarium, a Layer 2 scaling solution, launched ShibTorch, a burn portal. Every transaction on the scaling solution now contributes to token burn, fueling a bullish thesis for the asset.
SHIB trades at $0.00001334 on Binance.
Shibarium announces launch of burn portal
Shibarium announced that the burn portal, ShibTorch went live. The Layer 2 scaling solution’s transactions will burn SHIB each time, effectively reducing the total supply. A reduction in an assets supply reduces the selling pressure and has a net positive impact on price.
A reduction in Shiba Inu tokens could therefore positively influence the price alongside other factors.
Introducing #ShibTorch!
— Shibarium Network (@ShibariumNet) August 16, 2024
The long awaited community Burn Portal is now live. Every #Shibarium L2 transaction now helps burn $SHIB, reducing the total supply.
Start burning today https://t.co/NL6HAkE90j
Shiba Inu eyes 12% gains
Shiba Inu is in a downward trend that started March 5. The Moving Average Convergence Divergence (MACD) momentum indicator shows underlying positive momentum in SHIB price. The green histogram bars above the neutral line support a bullish thesis for SHIB.
SHIB could extend gains by nearly 12% and the meme coin could target the key support between March and August, $0.00001484, as seen in the SHIB/USDT daily chart.
SHIB/USDT daily chart
Looking down, Shiba Inu could find support at $0.00001078, its August 5 low.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
