There are still reasons to believe that Shiba Inu (SHIB) could be one of the biggest winners in this market cycle despite its underperformance compared to other meme coins. These reasons relate to the basics of the meme coin, which a bullish outlook before.
Why Shiba Inu could be the best choice this cycle
Shiba Inu could be the best bet in this cycle because of its burn rate. The number of tokens burned continues to rise, opening the possibility of the meme coin becoming more valuable and experiencing significant price increases. Recently the the combustion rate increased by more than 7,900%a development that could catalyze the price increase to $0.00008.
Shiba Inu’s burn rate will only continue to rise, given the team’s deliberate attempt to implement deflationary mechanisms to remove as many coins from circulation as possible. The layer-2 network Shibarium is one of the mechanisms the team has put in place, as basic transaction fees on the network are used to buy and burn SHIB tokens.
Interestingly, SHIB’s burn rate continues to increase despite Shibarium’s low network activity. This means that the burn rate can increase dramatically once the layer 2 network starts to gain sufficient traction again. For context, Shibarum burned more than 33.8 billion SHIB tokens last December, when it experienced its peak network activity.
Another reason why SHIB has a bullish outlook is the upcoming launch of the privacy-oriented layer 3 networkthat will be part of the Shiba Inu ecosystem. This will increase the usefulness of the meme coin and further increase its adoption as more users enter the ecosystem. Furthermore, there is a chance 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.
Big things are on the horizon for SHIB
The Shiba Inu team’s efforts also provide a bullish outlook for the meme coin, another reason why the coin could be one of the best bets in this cycle. Recently, the team made some major announcements, which meant a huge boost for SHIB. Shiba Inu director Lucie announced the upcoming launch of the Shib DAO and Foundation.
The Shib DAO will make Shiba Inu more decentralized, as SHIB, BONE, LEASH, and TREAT token holders can participate in making crucial decisions in the ecosystem. This will make the meme coin ecosystem more attractive as community members will have a say in decision-making.
In the meantime, the Shiba Foundation will ensure that DAO decisions are properly implemented. They will also manage assets such as the Doggy Treasury and provide full transparency and accountability with these funds.
Lucie also recently announced Shiba Inu’s partnership with Mass Finance. The financing company will act as the “financial layer” for the state of Shiba. This partnership is expected to help accelerate adoption and pave the way for broader participation in the Shiba Inu ecosystem.
The Shiba Inu Exec has also teased the SHI stable coinwhich could launch into the Shiba Inu ecosystem at some point. This will help generate more liquidity in SHIB and ultimately lead to more price appreciation for the meme coin.
Featured image created with Dall.E, chart from Tradingview.com