Reasons SHIB’s price action could be on the fence despite much cheer around…
- The Shiba Inu team updated the Shibarium testnet docs with valuable information surrounding the burn mechanism.
- SHIB witnesses a significant surge in burn rate and active addresses but experiences intermittent gains and losses.
The Shiba Inu team recently took a step forward by updating the documentation of their Shibarium testnet. The said document, packed with useful information, covers various aspects of the network, from staking to the burn rate of SHIB.
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Despite BONE being the primary token of the network, the updated documentation also shed light on how SHIB would benefit in the bargain.
– How much are 1,10,100 SHIBs worth today
The ‘key’ to SHIB’s growth
The updated Shibarium documentation provided users with accurate, detailed, and valuable information about validators, delegators, and, most significantly, the burn mechanism of the ecosystem.
As per the updated Shibarium documentation, transaction fees on the network could be classified into two types – Base Fee and Priority Fee. When a user initiates a transaction, the Base Fee is locked in a contract on the Shibarium network, while the Priority Fee will be paid to the validator.
The Base Fee is also divided into two parts, with 70% designated for burning and the remaining 30% reserved for network maintenance. This approach could thus ensure that the network remains sustainable in the long run, while contributing to a deflationary supply of SHIB tokens.
SHIB takes off in style…
In addition to the aforementioned information, a recent post from Shibburn highlighted an impressive reduction in the supply of SHIB tokens. The reduction was due to a significant burn rate witnessed in the past seven days.
HOURLY SHIB UPDATE$SHIB Price: $0.00001077 (1hr -0.60% ▼ | 24hr -2.35% ▼ )
Market Cap: $6,334,329,963 (-2.96% ▼)
Past 24Hrs: 17,663,879 (-20.03% ▼)
Past 7 Days: 1,073,811,020 (-44.83% ▼)
— Shibburn (@shibburn) April 3, 2023
The post revealed that over 1 billion SHIB tokens were burnt within the last week, with the burn rate surging over 2,000%. At the time of writing, the total amount of SHIB tokens burned surpassed 25 million. This resulted in a burn rate of over 16%.
Additionally, another encouraging metric that surged over the past week was the daily active addresses metric. Per data from Santiment, the daily active address count reached a level it had not observed in nearly a year.
It surged over 35,000 on 31 March. Interestingly, the last time the metric experienced a significant spike was on 16 March, 2022. Furthermore, as of this writing, the daily active address count stood at approximately 2,500.
– Realistic or not, here’s SHIB market cap in BTC’s terms
SHIB’s reaction on a daily timeframe
Over the past week, SHIB experienced some price fluctuations, with gains and losses occurring intermittently. As of this writing, SHIB was trading at a loss of over 1%, hovering around $0.00001 on a daily timeframe.
Furthermore, the decline also caused SHIB to dip below the neutral line on the Relative Strength Index (RSI). However, the Moving Average Convergence Divergence (MACD) remained above the zero line, indicating a weak bearish trend for the token.