Shibarium has been in the headlines since Shytoshi Kusama, the founder of the Shiba Inu ecosystem, teased about the project back in December. Before this, SHIB – the native token of the ecosystem – gained 27% in the last 30 days.
This puts the token in the whale’s eye which made it into the top five list of most held tokens. According to whale tracker WhaleStatsthe average amount held by whales is at 178 billion SHIB which is worth $1.8 million.
While significant whale activity is a bullish development, is it enough to sustain the memecoin rally?
Image: WhaleStats
The Gist On Shibarium’s Opening
There is no absolute date when the Shibarium upgrade will be released to the public, but the beta of the upgrade will be close to the launch date. This will give SHIB owners a taste of what a Layer 2 network solution will do for Shiba Inu.
Based on the latest ShibaSwap post a blog, the launch of the beta will give the public an idea of how the various concepts behind the upgrade will work. From lower gas costs to how validators and delegates contribute to the ecosystem, community members will have an idea of how they play their role in making the ecosystem function at peak performance.
Image by Watcher Guru
The Shibarium upgrade has been done during the Shiba Inu development team released Shiba Eternity returned on October 6 last year. Shiba’s burning mechanism as well implemented back in 2021, deflating the SHIB token.
The current Shiba Inu burn rate at the time of writing is 50% accordingly ShibBurn, a website dedicated to tracking SHIB token burn rates. During the Shibarium beta launch, we saw a higher burn rate than expected especially in the actual ecosystem launch.
What Does This Mean For SHIB?
SHIB token is currently trading at $0.00001052 and has tried to consolidate above the $0.00001038 support level. At the current price of the token, it may face a stronger correction in the short and mid-term. This is true because the bear will retest the current support level.
SHIB total market cap at $5.8 billion on the daily chart | Chart: TradingView.com
If the token continues to maintain its momentum, it may retest the price resistance of $0.00001192 which, if broken, will return the lost ground when the market collapses after fall from grace FTX.
With its Bitcoin breaking $21,000 resistance level and high correlation of SHIB with BTC, Shiba Inu can continue to follow the drive of the top coin to higher heights in the coming days or weeks.
Featured Image by Getty Images