Shibarium has been within the headlines since Shytoshi Kusama, the founding father of the Shiba Inu ecosystem, teased in regards to the project back in December. Ahead of this, SHIB – the native token of the ecosystem – gained 27% within the last 30 days.
This placed the token within the eyes of whales which made it of their top five list of most held tokens. In response to whale tracker WhaleStats, the typical quantity held by whales is at 178 billion SHIB which is valued at $1.8 million.
While significant whale activity is a bullish development, is it enough to sustain the memecoin’s rally?
Image: WhaleStats
The Gist On Shibarium’s Launch
There isn’t a absolute date when the Shibarium upgrade was going to be released to the general public, however the upgrade’s beta is alleged to be near its launch date. This may give SHIB holders a taste of what the Layer 2 network solution for Shiba Inu would perform.
Based on the newest ShibaSwap blog post, the launch of the beta will give the community an idea of how the varied concepts behind the upgrade will work. From the lower gas fees to how validators and delegators contribute to the ecosystem, community members would have an idea on how these roles are entangled to make the ecosystem function at peak performance.
Image by Watcher Guru
The Shibarium upgrade was already underway when the Shiba Inu development team released Shiba Eternity back on October sixth of last 12 months. Shiba’s burn mechanism was also implemented back in 2021, making the SHIB token deflationary.
Shiba Inu’s current burn rate on the time of writing is at 50% based on ShibBurn, a web site dedicated to tracking the burn rate of the SHIB token. When Shibarium’s beta launch occurs, we’d see a better than expected burn rate especially within the actual launch of the ecosystem.
What Does This Mean For SHIB?
The SHIB token is currently trading at $0.00001052 and has been attempting to consolidate above the $0.00001038 support level. At the present price of the token, it could face a stronger correction within the short and mid term. This is particularly true for the reason that bears are about to retest the present support level.
SHIB total market cap at $5.8 billion on the every day chart | Chart: TradingView.com
If the token continues to sustain its momentum, it would retest the $0.00001192 price resistance which, if broken, would end in regaining lost ground when the market crashed following the fall from grace of FTX.
With Bitcoin breaking its $21,000 resistance level and SHIB’s high correlation with BTC, Shiba Inu might proceed to follow the highest coin’s drive to higher highs in the approaching days or even weeks.
Featured Image by Getty Images