- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethereum's supply rises by over 210,000 ETH amid Vitalik Buterin's charity donation
Ethereum is down 0.7% on Thursday following three consecutive days of net inflows across ETH ETFs. Meanwhile, ETH's annual inflation rate has continued trending upward.
Uniswap unveils $2.5 million security pool for v4 upgrade amid most UNI coins held at loss
Uniswap has launched a $2.35 million prize pool for researchers to audit its upcoming v4 codebase. Uniswap v4 will introduce several new features, including on-chain limit orders and flash accounting.
FLOKI down following partnership with Premier League club Nottingham Forest
Floki Inu (FLOKI) is down 1.5% on Thursday after revealing its partnership with Premier League football club Nottingham Forest for the 2024/2025 football season.
Justin Sun stakes Ether with Lido, says TRON Protocol offers six times higher yield at nearly 25%
Justin Sun, founder of TRON and crypto expert compared the staking yield on Ethereum and TRON in a recent tweet. Sun stakes his Ethereum with Lido Protocol and earns a 4% yield on his holdings.
Bitcoin: Signs of weakness persist
Bitcoin (BTC) trades above $58,000 on Friday after after testing and failing to overcome the resistance level around $62,000 earlier in the week. The risk-on mood returned to markets this week, Marathon Digital added 4,141 BTC worth $249 million to its holdings and the US SEC approved a MicroStrategy leveraged ETF, potentially giving investors more exposure to Bitcoin.