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.
