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Shiba Inu (SHIB) might be on the brink of a significant bullish breakout as its daily burn rate increases and the total value locked (TVL) in the Shibarium network shows promising growth.

Shiba Inu Price Update

Shiba Inu’s price climbed to $0.00001270 on Wednesday, slightly above its year-to-date low of $0.000010. This upward movement comes as the ecosystem demonstrates signs of recovery and utility expansion.

Shibarium Network Sees Growth in TVL

Recent third-party data reveals that the total value locked (TVL) in the Shibarium network has surpassed $3 million, marking a steady recovery from its year-to-date low of $1.8 million. This milestone underscores the growing activity and adoption within the network.

The recovery in TVL has been driven by various decentralized applications (dApps) operating on Shibarium:

  • ShibaSwap: Assets increased by 32% in the last 30 days, reaching $1.4 million.
  • WoofSwap: Assets surged by 38%, hitting $746,700.
  • Other dApps such as K9 Financial DAO, ChewySwap, DogSwap, and PunkSwap also reported growth exceeding 30%.

Growing Utility Signals Evolution Beyond a Meme Coin

The increased activity on Shibarium highlights the project’s ongoing transition from a meme coin to a utility-driven cryptocurrency. This growth showcases the potential of Shibarium as a layer-2 network designed to enhance scalability and reduce transaction costs for Shiba Inu.

Data from ShibariumScan further supports this narrative, showing a consistent rise in both transaction volume and the number of wallet addresses. The network has completed over 1.13 billion transactions, with total wallet addresses surpassing 206 million. Daily transaction activity has also picked up in recent days, reflecting higher user engagement.

Token Burns Drive Supply Reduction

In addition to network activity, the daily burn rate of SHIB tokens has increased by 30%. This process has reduced the circulating supply to 594 trillion tokens. Token burns are a critical mechanism for reducing supply and potentially increasing the value of remaining tokens over time.

Shiba Inu Price Analysis

On the weekly chart, Shiba Inu’s price has been in a sustained downtrend since peaking at $0.000033 in November of last year. However, the token remains above the ascending trendline connecting the lowest swing points since June 2023, signaling potential support for future growth.

Additionally, Shiba Inu has formed a harmonic XABCD pattern that started in March 2023, when the token hit its peak of $0.000045. This pattern suggests the possibility of a price increase to $0.000045, which would represent a 265% rise from current levels. However, this projection may take several months or even years to materialize, as it is based on long-term technical analysis.

Key Takeaways for Investors

For investors interested in cryptocurrencies like Shiba Inu, the recent developments in the Shibarium network offer promising signs of growth. Here are some key points to consider:

  • Increased TVL and dApp activity suggest growing adoption and utility.
  • Rising transaction volumes and wallet addresses indicate higher network engagement.
  • The token burn mechanism could positively impact the token’s value by reducing supply.
  • Long-term price projections show potential for significant gains, though patience is required.

As Shiba Inu continues to evolve, staying informed about its ecosystem developments and price trends will be essential for investors looking to capitalize on its growth potential.

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