Shiba Inu price bleeds despite 13,000% spike in burn rate, here’s what to expect from the Dogecoin killer

Shiba Inu, the second-largest meme coin by market capitalization, is struggling to recoup its losses from 2022, but the good news for holders is that the Dogecoin-killer token recently broke out of its down channel after a massive SHIB burn. Shytoshi Kusama, the leader of the SHIB project has assured the community that development for layer-2 scaling solution Shibarium is on track for launch. 

Also read: Shiba Inu developers are finalizing Shibarium launch, bulls target $0.00001048 for SHIB

Shiba Inu burn rate explodes, records 13,000% spike

Shiba Inu, a meme coin with $4.78 billion market capitalization, recorded a massive spike in its burn rate. Burn mechanism is key to the SHIB ecosystem as it removes tokens permanently from the circulating supply, influencing supply dynamics and the price of the asset. 

SHIB burn recorded a 13,000% spike as hundreds of millions of tokens were destroyed at the end of 2022. Based on data from the Shibburn portal, upwards of 100 million SHIB tokens were burned in a 24 hour period. In the 48 hours that followed, 300 million more of the Dogecoin-killer’s tokens were permanently removed from circulation in a single transaction. 

Shytoshi Kusama, the lead of the SHIB project assured the community that layer-2 scaling solution Shibarium’s development is on track. Kusama met the Unification team working on the project and affirmed that Shibarium is being “finalized.” 

The launch of Shibarium is a highly anticipated event in the community. Experts believe it could trigger a rally in the meme coin. SHIB recently broke out of a down channel with a spike in its price. Yet overall, the meme coin remains 90% below its all-time high of $0.00008616. 

SHIB prepares to recoup losses, outlook turns bullish

Shiba Inu price was in a down channel since mid-December 2022. The Dogecoin competitor broke out of the down channel with a close above the upper trend line at $0.00000810. The meme coin is changing hands at $0.00000813, close to its 50-day Exponential Moving Average (EMA) represented in orange in the chart below. 

SHIB/USDT price chart

Shiba Inu bulls are targeting the $0.00000814 level and the next resistance is at $0.00000832. A decline below the 20-day EMA at $0.00000809 could invalidate the bullish thesis for SHIB price. 

Kabosu, the inspiration behind Shiba-Inu-themed cryptocurrencies DOGE and SHIB is gravely ill. As the dog battles with terminal illness, the sentiment in SHIB army and the Dogecoin community is dampened.