- Shiba Inu’s recent hard fork has significantly augmented its token burn rate.
- This update may indicate that SHIB is currently undervalued, despite recent bearish trends.
- A 4430% increase in SHIB’s burn rate was observed within just 24 hours post-upgrade.
Explore the latest hard fork of Shiba Inu’s Shibarium, its impact on SHIB’s burn rate, and why this might indicate an undervalued token.
Shiba Inu’s Major Hard Fork: What You Need to Know
On August 9, Shiba Inu’s Shibarium underwent a significant hard fork, introducing a new burn mechanism aimed at strengthening its deflationary attributes. As a part of this update, 70% of base transaction fees are now converted to SHIB tokens and permanently removed from circulation. The remaining 30% supports the platform’s maintenance and growth initiatives. This strategic move is designed to gradually reduce SHIB’s supply, thereby potentially increasing its value over time.
Current Metrics: A Closer Look at Shibarium Post-Hard Fork
Following the hard fork, Shibarium’s transactional metrics showed notable performance. According to Shibariumscan.io, the Layer 2 solution achieved 418 million total transactions and accumulated over 1.8 million unique wallets. Additionally, SHIBBURN data highlighted a dramatic 4430% increase in the token’s burn rate in just 24 hours, reflecting the hard fork’s immediate impact.
Market Performance and Potential Indicators
Despite the successful deployment of the hard fork, SHIB’s market performance remained lackluster, experiencing a 5% decline over the past week. At the time of writing, Shiba Inu trades at approximately $0.00001407, with a market capitalization surpassing $8.2 billion, ranking it as the 13th largest cryptocurrency.
Evaluation of Key Metrics
Interesting trends emerged from the key metrics analysis. Glassnode data revealed a significant drop in SHIB’s Network Value to Transactions (NVT) ratio over the last two weeks. A lower NVT ratio typically indicates that an asset might be undervalued, suggesting potential for a price increase. Concurrently, the supply of SHIB on exchanges diminished, implying heightened buying pressure. Although SHIB’s velocity—a measure of how frequently the token is used over a given period—increased, the network growth showed a downward trend, hinting at possible bearish signals.
Technical Analysis: What Indicators Are Telling Us
Analyzing Shiba Inu’s technical indicators reveals mixed signals. The Chaikin Money Flow (CMF) exhibited a sharp rise, which is often positive. The price also touched the lower boundary of the Bollinger Bands, typically an indicator of an impending uptick. However, the Relative Strength Index (RSI) remained bearish at a value of 36.
Conclusion
The recent hard fork has undoubtedly improved Shiba Inu’s deflationary prospects through an aggressive burn strategy. Despite a bearish market performance, key metrics suggest that SHIB could be undervalued, with potential for a price increase. Investors should closely monitor the token’s market movements and further technical developments within the Shibarium ecosystem.
