There are still reasons to believe that Shiba Inu (SHIB) could be one of the major gainers in this market cycle despite its underperformance compared to other meme coins. These reasons relate to the meme coin’s fundamentals, which paint a bullish outlook for it.
Why Shiba Inu Could Be The Best Bet This Cycle
Shiba Inu could be the best bet in this cycle because of its burn rate. The number of tokens burned continues to spike, which opens up the possibility of the meme coin becoming more valuable and enjoying significant price rallies. Recently, the burn rate spiked by over 7,900%, a development that could catalyze the price surge to $0.00008.
Shiba Inu’s burn rate will only keep rising, considering the team’s deliberate effort to implement deflationary mechanisms to help remove as many coins as possible from circulation. The layer-2 network Shibarium is one of the mechanisms the team has put in place, as base transaction fees on the network are used to buy and burn SHIB tokens.
Interestingly, SHIB’s burn rate has continued to spike despite Shibarium’s low network activity. This means that the burn rate could surge massively once the layer-2 network begins to gain enough traction again. For context, Shibarum burned over 33.8 billion SHIB tokens last December when it experienced its peak network activity.
Another reason SHIB boasts a bullish outlook is the imminent launch of the privacy-focused layer-3 network, which will be a part of the Shiba Inu ecosystem. This will increase the meme coin’s utility and further help boost its adoption as more users flock into its ecosystem. Moreover, there is the likelihood that the Shiba Inu team will implement a similar SHIB buyback and burn mechanism on the layer-3 network, just as they did with Shibarium.
Big Things Are On The Horizon For SHIB
The Shiba Inu team’s efforts also present a bullish outlook for the meme coin, another reason the coin could be one of the best bets in this cycle. Recently, the team made several key announcements, providing a huge boost for SHIB. Shiba Inu Exec Lucie announced the imminent launch of the Shib DAO and Foundation.
The Shib DAO will make Shiba Inu more decentralized as SHIB, BONE, LEASH, and TREAT token holders will be able to participate in making crucial decisions in the ecosystem. This will make the meme coin’s ecosystem more attractive since community members have a say in decision-making.
Meanwhile, the Shiba Foundation will ensure that decisions made by the DAO are properly executed. They will also manage assets like the Doggy Treasury and provide full transparency and accountability with these funds.
Lucie also recently announced Shiba Inu’s partnership with Mass Finance. The finance company will act as the “financial layer” for the Shiba State. This partnership is expected to help accelerate adoption and pave the way for broader participation in the Shiba Inu ecosystem.
The Shiba Inu Exec has also teased about the SHI stablecoin, which could launch in the Shiba Inu ecosystem at some point. This will help drive more liquidity into SHIB and ultimately lead to more price rallies for the meme coin.
Featured image created with Dall.E, chart from Tradingview.com
Source: https://bitcoinist.com/shiba-inu-best-bet-this-cycle/