This event could trigger a recovery in Shiba Inu price

Shiba Inu suffered a massive drop in its price in the recent crypto bloodbath. While Shiba Inu price posted double-digit losses, experts believe the release of the beta phase of Shibarium could trigger a recovery in the meme coin. 

Also read: Ethereum whales scoop up 150 billion Shiba Inu coins as burn intensifies

Shiba Inu price bleeds 10% overnight in crypto bloodbath

The recent crypto bloodbath has taken a toll on most of the top cryptocurrencies. Bitcoin price slipped to the $20,200 level. Meme coins Shiba Inu and Dogecoin suffered massive drops in price, posting double-digit losses overnight. Danielle Du Toit, a leading crypto analyst, evaluated the Shiba Inu price chart and noted that SHIB price has dropped nearly 18% since June 26. 

Nevertheless, the Momentum Reversal Indicator (MRI) has flashed a buy signal on the four-hour price chart. Any increase in buying pressure could push the Shiba Inu price to retest $0.0000104. 

Shiba Inu Perpetual Futures 

Based on data from Coinglass, as Shiba Inu price plummeted 10% overnight, it triggered $1.44 million in liquidations of SHIB futures across exchanges. The following chart offers insight in the liquidation of short and long positions in Shiba Inu across exchanges. 

Total liquidations in Shiba Inu longs and shorts against price

Experts attribute the Shiba Inu price rally that preceded the bloodbath to fundamental reasons. Adam O’Niell, CMO at leading cryptocurrency exchange Bitrue, was quoted as saying,

The parabolic move by SHIB is mainly fueled by the coming Shibarium protocol. This move is also partly coming from the SHIB burnt token that has reached a total of 400 trillion milestones.

Shiba Inu burn crosses key milestone of 400 trillion

The Shiba Inu coin burn portal, Shibburn, was launched in late April this year. The portal started tracking the burn of the SHIB tokens. These coins sent to dead wallet addresses were considered burnt and permanently removed from the circulating supply. 

The portal was developed in association with Ryoshi’s Vision token developers and 0.49% of all RYOSHI transactions would be distributed to owners of burntSHIB. Burn rate climbed 63.95% overnight, as 218.84 million Shiba Inu coins were destroyed. A total of 410.37 trillion Shiba Inu coins have been burnt, pulled out of circulation. 

Shiba Inu coin burn statistics

Shibarium beta to be released soon

The ShibArmy is still awaiting the official announcement for the launch of layer-2 solution Shibarium and Shiba Games, two projects that are set to roll out anytime in 2022. With several projects under development in the Shiba Inu ecosystem, experts consider the meme coin a community-driven effort. 

Shibarium, Shiba Inu ecosystem’s layer-2 solution, could see the release of its beta phase as early as Q3 2022. Developers at Unification Foundation announced on June 24 that Shibarium’s public beta is set to be deployed in Q3 2022. 

On June 19, developers asked the Shiba Inu community to vote on whether or not to halt the minting of BONE on hitting the 230 million token cap. Since Shibarium is set to use BONE for payment of transaction fees, validators would receive BONE tokens for their role in the ecosystem. Validator roles and sequences will require 20 million BONE as a safeguard. 

Members voted in favor of the proposal and accepted BONE’s mint to be capped at 230 million, and the remaining 20 million to be reserved for Shibarium validators. 

Experts believe the release of Shibarium could trigger a recovery in Shiba Inu price as the layer-2 solution would reduce transaction cost and processing time for the meme coin. 

Analysts argue Shiba Inu price trend looks bullish

Analysts at FXStreet believe the Shiba Inu price trend is still bullish. Shiba Inu price flipped resistance at $0.0000095 to support and analysts expect the meme coin to overcome next resistance at $0.0000104. Shiba Inu price trend could turn bullish, however traders need to watch out for one condition. Check out the video for more: