Shiba Inu (SHIB) is on a roll, having again broken through the crucial $0.00001 resistance level. This recent price increase The meme coin is believed to be driven by several factors that undoubtedly provide a bullish narrative for the crypto token.
The burning rate contributes to the increase of the Shiba Inu
Data of the Shibburn burn tracking website shows that the SHIB burning rate has increased exponentially lately, contributing to the meme coins latest price increase. According to Shibburn, almost 103 million SHIB tokens have been burned in the last 24 hours, an increase of 1913% from the previous day.
This is a welcome development, considering that Bitcoinist reported A drop in the SHIB token occurred a week ago, with only around 2 million SHIB tokens burned on February 20. As such, an increase in the symbolic burns automatically sends a bullish signal to the entire ecosystem. Token burning is one of the initiatives that SHIB community has adopted to help increase the value of SHIB.
Meanwhile, the recent request launched by the SHIB community urging Grayscale Investments to offer a Shiba Inu ETF is another factor that could be driving the meme coin's bullish momentum. Although it seems like a reach, the possibility of launching an ETF that focuses on the meme coin provides optimism for SHIB investors.
Furthermore, the impact that mere rumors about the launch of an ETF could have on the crypto token in question has become evident, having seen bitcoin rise significantly following reports that a bitcoin Spot ETF bitcoin-etfs-approved-by-us-sec/” rel=”nofollow”>would be approved.
Investors are betting more on SHIB
Data of Coinglass shows that the bitcoin-derivatives-market-volumes-show-bullish-trend-after-2022-downturn/” rel=”nofollow”>open interest for SHIB has increased in the last 24 hours. This is important since the derivatives market is bitcoin-crash-cryptoquant-ceo-says/” rel=”nofollow”>acquaintance to impact the price discovery of a crypto token. The rise in open interest also suggests that traders are likely placing more bullish leveraged bets on the meme coin.
This growing interest in the Shiba Inu ecosystem is not surprising, considering how much work ethereum-erc-404-nft/” rel=”nofollow”>the team continues to contribute to ensure the crypto token stands out as more than just a meme coin. Earlier this month, they got a Strategic partnership with K9 Finance, a liquid staking derivatives (LSD) platform.
This movement ultimately benefit SHIB, as more token burns are expected to take place due to increased trading activity on Shibarium. More liquidity is also likely to flow into the ecosystem soon enough as K9 Finance recently Announced its token generation event, which will take place on March 7.
At the time of writing, SHIB is trading around $0.00001075, up more than 5% in the last 24 hours, according to data from CoinMarketCap.
SHIB price showing strength at $0.000011 | Source: SHIBUSD on Tradingview.com
Featured image from CryptoRank, chart from Tradingview.com
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