Home Blog Page 1062

El Salvador Revises Bitcoin Law to Limit Public Sector Exposure, Secures $3.5B Financing Deal Including IMF Support

Albert Brown
-
0
El Salvador Revises Bitcoin Law to Limit Public Sector Exposure, Secures $3.5B Financing Deal Including IMF Support

El Salvador has reached a significant milestone in its financial and economic reform efforts by securing $3.5 billion in financing following revisions to its Bitcoin law that limit public sector exposure.

This financing includes a $1.4 billion Extended Fund Facility (EFF) agreement with the International Monetary Fund (IMF), as well as contributions from the World Bank, the Inter-American Development Bank, and other regional development banks.

Mitigating Bitcoin-Related Risks

A key aspect of this deal is a revised approach to Bitcoin, where its use in the private sector will now be voluntary, and public sector involvement in Bitcoin-related activities will be scaled back. Additionally, Public taxes will continue to be paid exclusively in U.S. dollars. 

These changes also include gradually unwinding its role in the Chivo e-wallet platform. Per IMF, legal reforms will ensure robust regulation and supervision of digital assets, prioritizing financial stability and consumer protection.

IMF Long Urge on Bitcoin Risks

El Salvador’s decision to adopt Bitcoin as legal tender in 2021 faced repeated criticism from the IMF. The global financial institution has warned the government on multiple occasions about the potential fiscal risks and negative financial consequences of fully embracing Bitcoin.

Per an October 4 report, the IMF reiterated its concerns regarding the widespread use of Bitcoin in the country, encouraging a more cautious approach to the crypto. At the time, Julie Kozack, the IMF’s Director of Communications, confirmed that the agency addressed concerns about El Salvador’s growing exposure to Bitcoin.

The IMF has urged tighter controls on Bitcoin usage and more rigorous oversight to minimize the public sector’s engagement with the digital asset.

Strengthening Fiscal and Economic Stability

Notably, the latest financing agreement aims to enhance El Salvador’s fiscal and external stability while supporting inclusive growth. The IMF has outlined a fiscal consolidation strategy to improve the country’s primary balance by 3.5 percent of GDP over three years. This effort includes measures already incorporated into the 2025 budget, such as reducing the wage bill and government spending while protecting vulnerable groups and prioritizing essential public investments.

Additionally, El Salvador will implement structural reforms to address public debt, projected to peak at 85 percent of GDP in 2024. Efforts to modernize the civil service, ensure pension system sustainability, and increase revenue mobilization will form the backbone of this strategy.

Transparency and Reserve Buffers

Transparency and governance improvements are central to the reform agenda. Early efforts include enhancing fiscal responsibility frameworks and strengthening anti-corruption measures. 

These steps will involve more detailed reporting of debt, procurement contracts, and state-owned enterprise activities. The government also plans to modernize its infrastructure and adopt climate adaptation strategies to bolster the business environment.

Here’s Dogecoin Price If Bitcoin Hits $325K and Ethereum $22K as Predicted by VanEck

Lele Jima
-
0
Here’s Dogecoin Price If Bitcoin Hits $325K and Ethereum $22K as Predicted by VanEck

Dogecoin could exceed the $1 psychological mark if Bitcoin and Ethereum spike to $325,000 and $22,500, as projected by VanEck.

Crypto prices have soared tremendously since last month, with top assets like Bitcoin (BTC) and Ethereum (ETH) surging above $100,000 and $4,000, respectively. Although ETH has witnessed a pullback below the $4,000 mark, Bitcoin currently trades above $100,000.

Nonetheless, the premier crypto assets are preparing to clinch some audacious targets issued by top experts. Specifically, Matthew Sigel, Head of Digital Asset Research at VanEck, set a bullish price target of $325,000 for Bitcoin in June. Interestingly, he also projected that Ethereum will someday trade at $22,500.

Dogecoin Correlation with Bitcoin and Ethereum 

If VanEck’s prediction for Bitcoin and Ethereum comes true, other crypto assets like Dogecoin (DOGE) will also surge to unprecedented levels, given their correlation.

The price movements of Bitcoin and Ethereum usually determine the trajectory of other assets like Dogecoin. An increase in Bitcoin and Ethereum prices translates to a positive performance for DOGE and vice versa.

Data from IntoTheBlock shows that Dogecoin has a 97% correlation with Bitcoin over the past 30 days. Similarly, Dogecoin also boasts a strong correlation of 86% with Ethereum’s price action in the same timeframe.

Dogecoin correlation with Bitcoin and Ethereum
Dogecoin’s correlation with Bitcoin and Ethereum

Price of DOGE If VanEck Prediction for Bitcoin and Ethereum Materialize

Dogecoin’s strong correlation with Bitcoin and Ethereum over the past month means its price could soar tremendously if BTC clinches the $325,000 target and ETH hits the $22,500 level set by VanEck.

Achieving a target of $325,000 requires Bitcoin to soar by 219.86% from its current price of $101,604. Similarly, Ethereum must record a 476.48% rally to hit VanEck’s projected target of $22,500.

Meanwhile, we analyzed how much Dogecoin will be worth if it matches the average projected surge rate of VanEck’s forecast, which stands at 348.17%.

Applying this growth rate to Dogecoin’s current price of $0.3641 will see DOGE trade at $1.82, marking a new all-time high for the leading memecoin. This would potentially take Dogecoin’s market cap to $267.89 billion, surpassing Tether to become the third biggest crypto.

Potential Timeline for Dogecoin to Hit $1.82 

Interestingly, several market observers believe the $1.82 target is realistic for Dogecoin. According to experts at the crypto trading platform Changelly, Dogecoin will have reached its target by November 2031, seven years from now. 

However, top prediction platform Telegaon speculates that Dogecoin will hit the $1.82 target sooner, specifically in 2026, less than two years from now. 

Whether Dogecoin can soar to $1.82 within the next 2 – 7 years remains unclear. However, several factors, especially Elon Musk’s continuous endorsement and Dogecoin’s growing adoption for payment purposes, could pave the way for this surge. 

Fed Chairman Confirms Central Bank Prohibited from Owning Bitcoin Amid Strategic Reserve Talks

Albert Brown
-
0

The U.S. Federal Reserve has confirmed that it has no plans to engage in Bitcoin holdings or participate in government-led efforts to establish a strategic Bitcoin reserve. 

This statement was delivered by Fed chairman Jerome Powell during a press conference on Wednesday, held after the conclusion of a two-day policy meeting. 

Bitcoin Ownership Prohibited for the Fed

Powell reiterated that legal restrictions prohibit the central bank from owning crypto, dismissing rumors about the Fed’s potential involvement in creating a Bitcoin reserve.

The Fed chairman further clarified that any potential changes to this policy would require Congressional action. He stated that the Fed is not seeking legislative amendments to allow crypto ownership.

This clarification comes amid growing speculation regarding the Fed’s interest in digital asset reserves. However, the president-elect, Donald Trump, is pursuing the establishment of a strategic Bitcoin reserve for the United States.

Bitcoin Reserve Under Trump’s Presidency

A draft executive order prepared by the Bitcoin Policy Institute proposes the creation of this reserve under the Exchange Stabilization Fund (ESF) managed by the U.S. Treasury.

The draft outlines a framework to integrate Bitcoin into the nation’s financial stability plans. However, this executive order will require approval and formal signing by Trump after his inauguration to be implemented.

The U.S. government currently holds 212,847 BTC, valued at approximately $22.3 billion, acquired through law enforcement seizures.

Interest Rate Cuts and Crypto Market Impact

Notably, the Federal Reserve announced a reduction in the interest rate ceiling to 4.50%, a decline from the previous 4.75%, aligning with market expectations.

Despite the anticipated nature of this move, the cryptocurrency market saw a notable decline, with the overall market capitalization dropping by 4.4%. Bitcoin recorded a 2.64% daily loss, trading at $101,365 during this press, although it maintained a modest weekly gain of 0.65%.

The Federal Reserve’s dot plot further revealed a reduced forecast for rate cuts in 2025, lowering expectations from four reductions to two. Powell stated that future rate adjustments would proceed cautiously, contingent upon inflation trends. It could take up to two years to meet inflation targets, making rate hikes unlikely in the near term.

Bitcoin Resilience Above $100K

Elsewhere, analysts from blockchain platform Santiment noted that Bitcoin’s resilience above the $100,000 mark, despite the broader market dip, reflects underlying strength compared to traditional assets like the S&P 500.

The platform also noted that the Federal Reserve’s indication of a 50 basis point rate cut through 2025 is only half of what the public had anticipated before the latest FOMC meeting.

Analyst Says XRP Bulls Have Stepped in as Recent 18% Drop Leads to Double Bottom

Sam Wisdom Raphael
-
0
Analyst Says XRP Bulls Have Stepped in as Recent 18% Drop Leads to Double Bottom

XRP eyes a potential double-bottom structure amid the recent crypto market downturn that triggered a 9% drop in its price.

The cryptocurrency market faced a bearish turn following the Federal Reserve’s decision to cut interest rates by 0.25%. XRP experienced a sharp 18% decline from $2.7 to $2.2. 

This drop coincided with Bitcoin’s retreat to $100,000 from the $108,000 top yesterday, triggering sell-offs across altcoins. However, analyst EGRAG believes XRP’s latest price action signals bullish momentum and presents a potential recovery pathway.  

Bulls Step in After Price Drop  

In his latest analysis, EGRAG shared a 1-hour XRP chart that highlights the recent market drop and its aftermath. Notably, the XRP price tumbled to the $2.2 level but rebounded after finding support within the $2.17–$2.27 range, highlighted in blue on the chart. 

Interestingly, EGRAG’s chart shows that XRP remains below the 21-period Exponential Moving Average (EMA), currently at $2.39. This level serves as the most immediate resistance level, with XRP’s position below it suggesting a battle between buyers and sellers.  

XRP 1h Chart EGRAG Crypto
XRP 1h Chart | EGRAG Crypto

EGRAG emphasized that with the latest 18% drop, XRP bulls have stepped in, countering bearish sentiment after the sharp decline. Notably, the 1-hour chart appears to be forming a potential double-bottom structure with the recent crash, a bullish reversal pattern.

For context, the first bottom occurred when XRP dropped to a low of $2.33 on Dec. 16 before recovering to the peak of $2.72 yesterday on the back of the Ripple stablecoin RLUSD launch. The recent slump to $2.17 has confirmed the second bottom. 

If this holds, XRP could consolidate in the highlighted support zone before resuming its uptrend. However, XRP needs to breach the neckline resistance at around $2.7 to validate the structure. The bulls’ involvement might stabilize the price.

XRP Indicators  

For context, the recent disclosure is EGRAG’s latest update on the 1-hour chart analysis. The analyst had earlier advised traders to analyze the ongoing price action in detail. 

He noted that the Relative Strength Index (RSI) had aligned with price trends. RSI movements pointed to strength as XRP hovered near the 70 mark. A breakout above 70 could set the pathway to 90, indicating a bullish case.  

Also, the Moving Average Convergence Divergence (MACD) further supported this bullish outlook, with its histogram bars flipping bullish. Additionally, the Average Directional Index (ADX) hinted at an improving outlook. 

 

XRP Price Scenarios  

Meanwhile, six days before the latest price drop, EGRAG predicted two possible scenarios for XRP’s short-term movements. At the time, XRP traded for $2.31. Scenario A pointed to a breakout above $2.5, which would have set the stage for further gains. 

However, Scenario B projected a dip to $2.27, followed by consolidation in the $2.17–$2.27 range. This range-bound action would allow XRP to form a double-bottom pattern, building a foundation for future bullish momentum.  

With the recent drop, XRP appears to be following Scenario B. The price has retested the $2.2 zone, where it found support, and could now consolidate before attempting a breakout. 

EGRAG believes this phase will allow major moving averages to catch up, creating a healthier structure for sustained growth. If the double-bottom pattern plays out, XRP could see a recovery above the $2.5 level. At press time, XRP trades for $2.35, up 1.89% this morning.

Expert Says Bitcoin is The Best Trade You Ever See But Warns Against Leverage Use

Okoya David
-
0

A market veteran warns traders and investors against the use of leverage for Bitcoin trades despite admitting Bitcoin’s appeal.

While Bitcoin‘s recent rally to new highs has sparked a flurry of ‘up only’ calls, recent market volatility has offered a reminder about the need for caution in the nascent market. 

Say No to Leverage?

Seasoned finance expert Fred Krueger has warned Bitcoin investors against leverage. In an X post on Thursday, December 19, the angel investor described the leading digital asset as likely the single best trade ever but warned that many risked blowing it with leverage.

Similarly, pro-crypto lawyer and former U.S. Senate candidate John Deaton contended that leverage trading made no sense with Bitcoin and crypto. This is likely due to the greater volatility involved. He instead advocated for interested investors to simply hold the asset, which he described as “the best performing asset of all time.”

Leverage allows traders and investors to control a larger amount of capital than they have by borrowing from their broker in the hopes of multiplying returns. However, with the higher profit potential also comes greater risks. 

These risks include amplified losses, margin calls, which require traders to put up additional capital when their account balance falls below a set threshold, and liquidations, where traders’ assets are forcibly sold to cover losses.

The warnings from Krueger and Deaton come as several Bitcoin traders have felt the brunt of these risks over the past 24 hours.

Bitcoin Traders Lose Over $140M

Leveraged Bitcoin traders have lost over $140 million in the past 24 hours, according to CoinGlass data at the time of writing.

Crypto liquidation heatmap
Crypto liquidation heatmap. Source: CoinGlass

The losses come as the asset took many by surprise with a sharp decline from highs of over $106,500 on Wednesday, December 18, to lows of $98,800 amid hawkish comments from Fed Chair Jerome Powell.

In a press conference following the December 2024 Federal Open Market Committee (FOMC) meeting, Powell stressed that the central bank’s fight with inflation was not over and that interest rates were likely to remain higher for longer. The Fed now projects only two quarter-point rate cuts in 2025, as opposed to the initial projection of four.

Pundit Says Don’t Sell Your XRP Until These Seven Things Happen

Abdulkarim Abdulwahab
-
0
Pundit Says Don’t Sell Your XRP Until These Seven Things Happen

Well-known crypto analyst Velo Maxi shares his insights on the future of XRP and outlined a series of key events that holders should watch before considering selling their tokens. 

According to Velo Maxi, these events could have a significant impact on XRP’s value and market position.

Ripple’s RLUSD Stablecoin Launch

Maxi pointed to Ripple’s recent launch of its stablecoin, RLUSD, on global exchanges as the first major milestone. Notably, this launch occurred this past Tuesday. XRP proponents see it as a positive development that will impact XRP’s performance in the future.

Trump’s Potential Return

Secondly, Maxi advised XRP holders to hold on to their tokens until Donald Trump officially returns to office. Trump emerged victorious in the November election. His return as the U.S. President promises to bring regulatory changes that could be favorable to cryptocurrencies, including XRP.

Gary Gensler’s Departure from the SEC

Another key factor Maxi highlighted was potential the departure of SEC Chair Gary Gensler. Gensler announced his resignation in November, which will take effect in January. 

While the court has clarified XRP’s legal status, some community members feel that the threat to XRP will not be fully over until Gensler steps down. 

President-elect Donald Trump has appointed Paul Atkins, a former SEC commissioner, to take over as SEC chair. Atkins is expected to be more favorable to crypto.

End of Ripple’s Legal Battle

Maxi also pointed to the ongoing legal case between Ripple Labs and the SEC as a crucial event. The case is currently in the appeal phase, but many market commentators believe it could settle once Trump takes office and the new pro-crypto SEC chair leads the agency.

Altcoin Season

Furthermore, Velo Maxi mentioned the potential for an “altcoin season,” a period when alternative cryptocurrencies, including XRP, could experience significant growth. This phase typically occurs when Bitcoin’s dominance drops below 50%, though it currently stands at 57%.

Ripple’s Major Bank Partnership

The analyst also mentioned the possibility of Ripple announcing a significant partnership with a major financial institution. This development could positively impact XRP’s market value. 

Notably, Ripple is actively collaborating with several financial institutions to drive XRP-based deals.

XRP ETF Approval

Lastly, Maxi highlighted the possibility of an XRP exchange-traded fund (ETF) being approved. Currently, four filings are under review by the SEC. Approval is expected before the end of 2025, particularly with the new pro-crypto SEC chair. 

If approved, the ETF could attract more institutional investment, potentially driving up XRP’s price and accelerating its mainstream adoption. XRP enthusiasts hope for a scenario similar to Bitcoin’s rise after its ETF approval earlier this year. Specifically, Bitcoin has surged from around $40K to over $108K since the coming of ETFs.

In conclusion, Maxi urged XRP holders to “be smart, not stupid,” advising them to wait for these key events to unfold before deciding if they will sell their tokens.

Early Shiba Inu Investor Sells 400B SHIB in Latest Dip, Nets $9.59M Profit

Lele Jima
-
0
Early Shiba Inu Investor Sells 400B SHIB in Latest Dip, Nets $9.59M Profit

Following the latest market drop an early Shiba Inu investor sold nearly 400 billion SHIB tokens, netting a $9.59 million profit. 

Popular smart money platform Lookonchain called the public’s attention to the transaction, which occurred today. 

User Initial Engagement with SHIB 

According to Lookonchain, the user behind the transaction was an early investor who acquired SHIB on August 6, 2020, a few days after the token launched.

At the time, the user purchased a whopping 15.28 trillion SHIB for a meager cost of $3,800, at an aggregate price of $0.000000000248 per token. Lookonchain claimed that the value of these Shiba Inu tokens surged to a whopping $1.22 billion when the token hit its peak price in October 2021.

Details of the Latest Shiba Inu Transaction 

Ever since, the user has been selling SHIB, with the latest sale recorded in the past few hours. Data from Lookonchain shows that the user moved nearly 250 billion SHIB in three transactions to Gemini crypto exchange. The three transactions involved 10 million SHIB, 99.98 billion SHIB, and 150 billion SHIB, respectively. 

A few minutes after the Lookonchain disclosure, the user moved another 150 billion SHIB to Gemini, bringing the total tokens transferred to Gemini in the past few hours to 399.99 billion SHIB. For context, tokens moved to exchanges are usually sold for fiat or swapped for other assets. 

With Shiba Inu currently trading at around $0.000024, the nearly 400 billion SHIB tokens are valued at approximately $9.6 million. These 400 billion tokens were acquired at an aggregate price of $99.19 in August 2020, resulting in a jaw-dropping profit of over $9.59 million from the recent sale. 

Data from Etherscan shows that the user has been selling SHIB over the past few weeks on Crypto.com and Gemini. Despite this, the wallet still holds 2 trillion SHIB, currently valued at $48 million. 

Investors Take Cover in Ongoing Market Dip 

The recent sales come as the market undergoes an intense bloodbath led by Bitcoin. Notably, Shiba Inu was not spared in the bearish market, as it has witnessed a decline of 4.97% in the past day. 

Investors are reducing their exposure to risk assets by converting them to stablecoins like USDT until the bloodbath concludes. 

In a separate tweet, Lookonchain revealed how a user hurriedly moved 150 billion PEPE tokens, worth $2.72 million, to Binance to mitigate their losses incurred from the latest market crash. 

As reported earlier, this user acquired 150 billion PEPE tokens worth $2.94 million and 60 billion SHIB worth $1.52 million from Binance on November 28. 

Following the recent drop, the user suffered a loss of $219,000 on their PEPE holdings and $136,000 on SHIB, according to Lookonchain. While the investor has liquidated their PEPE position, the user still holds all 60 billion SHIB, demonstrating their confidence in Shiba Inu’s potential recovery. 

Trump-Inspired Project Acquires 231,726 ENA Tokens, Expanding Holdings to 741,687 Amid Major Partnership

Albert Brown
-
0
Trump-Inspired Project Acquires 231,726 ENA Tokens, Expanding Holdings to 741,687 Amid Major Partnership

World Liberty Financial, the Trump-inspired initiative, continues to expand its portfolio with significant crypto acquisitions.

On December 18, the project utilized Cow Protocol to purchase 231,726 Ethena (ENA) tokens for 250,000 USDC. This transaction, monitored by blockchain intelligence platform Arkham, occurred at 19:55:35 UTC.

Following this acquisition, World Liberty Financial now holds a total of 741,687 ENA, demonstrating its ongoing commitment to building a diverse portfolio of digital assets.

Interestingly, the latest move from World Liberty Financial comes on the heels of Ethena Labs announcing a partnership with the Trump-inspired project to integrate Ethena’s sUSDe as a fundamental collateral asset.

Notably, as of December 16, the project’s multi-signature wallet had exchanged 500,000 USDC for 509,955 ENA tokens. The average purchase price stood at $0.98 per token.

World Liberty Financial Previous Activity

The WLFI wallet has also been actively diversifying its portfolio beyond stablecoins and Ethereum. Its holdings include Chainlink, Aave, Ondo, and Coinbase Wrapped Bitcoin (cbBTC), collectively valued at nearly $45 million as of December 16. Previous acquisition details reveal significant investments, including:

  • $30 million USDC for 8,105 ETH, at an average price of $3,701 per ETH.
  • $10 million USDC for 103 cbBTC, purchased at an average of $97,181 each.
  • $2 million USDC for 78,387 LINK tokens at $25.5 each.
  • $2 million USDC for 6,137 AAVE tokens at $326 each.

Conversion and Market Activity

It is also important to note that as of today, World Liberty Financial converted its entire holdings of 103 cbBTC into 103.149 WBTC through Cow Protocol. This move follows the delisting of WBTC from Coinbase due to its association with Justin Sun. 

The timing of these transactions aligns with a period of heightened market activity for Ethena. Between December 16 and December 18, ENA’s price fluctuated significantly, dropping from $1.30 to a low of $1.01.

During this dip, expert analyst Ali Martinez observed a substantial whale accumulation of approximately 36.55 million ENA tokens, suggesting increased interest from institutional players. Currently, the price of ENA has rebounded to $1.14, reflecting a 5.83% increase in the last 24 hours and a 4.35% gain over the past week.

Here’s Why Bitcoin Tanked Below $100,000 and XRP Slid Below $2.3

Albert Brown
-
0
Here’s Why Bitcoin Tanked Below $100,000 and XRP Slid Below $2.3

Over the past 24 hours, the crypto market has experienced significant turbulence, with the slump in Bitcoin price triggering a crash for altcoins like XRP.

After recently rallying to new highs above the $108,000 price point, Bitcoin (BTC) saw a sharp decline to below the $100,000 price point, dragging leading altcoins such as XRP down with it. The sharp and largely unexpected decline has left the market grasping for answers.

Hawkish Fed to Blame? 

In the last 24 hours, BTC dropped as much as 7.2% from highs of over $106,500 to lows around the $98,800 price point on Binance.

Moving in lockstep with the market leader, Ethereum (ETH) recorded an over 9% decline from around the $3,900 price point to just above $3,500. Similarly, XRP tanked 19% from near the $2.6 price point to about $2.2.

At the same time, Solana (SOL) slid by nearly 12% from about $226 to just below the $200 price point. Notably, these declines have led to over $800 million in market liquidations, per CoinGlass data at the time of writing.

Crypto market liquidation heatmap.
Crypto market liquidation heatmap. Source: CoinGlass

As several analysts have highlighted, the crypto market’s decline on Wednesday, December 18, appears to be linked to Federal Reserve Chair Jerome Powell’s speech following the December 2024 Federal Open Market Committee (FOMC) meeting.

While the Fed cut rates by 25 basis points to the 4.25-4.5% as expected, Powell rattled the markets with statements suggesting that the apex bank’s fight with inflation was far from over and interest rates were now likely to remain higher for longer. 

Powell disclosed that the most recent 25 bps rate cut was a “closer call” against market expectations heading into the FOMC that it was a certainty.

The Fed now expects to see inflation at 2.5% in 2025, up 0.4% from its initial 2.1% projection in September 2024 and much higher than its 2% target.

As such, the central bank now looks to only cut lending rates by two-quarter points in 2025, down from the initially projected four, all of which could slow the influx of capital to risk markets like crypto.

“It wasn’t today’s 25 bps cut that made markets freak out—it was the realization that inflation might stick around longer, and the Fed’s not quite ready to take its foot off the gas. Sentiment is shifting, and 2025 suddenly looks a lot less rosy,” prominent crypto analyst Ali Martinez explained on X.

Meanwhile, Powell also scuttled hopes that the Donald Trump administration would launch a Bitcoin national reserve. The Fed chair contended that the law did not allow the central bank to hold the digital asset, adding that the bank was not looking to change the law.

Markets Ticking Up

Following the initial knee-jerk reaction, some crypto assets have started paring losses. BTC, for one, is back above the $100,000 price level, trading near the $101,300 price point but still down about 5% from its Wednesday highs. ETH has also recovered to trade at nearly around the $3,700 price point, while XRP trades close to $2.35.

BTC/USDT daily candle chart
BTC/USDT daily candle chart. Source: TradingView

While 2025 may now look less exciting for risk markets than previously expected, analysts like Ali Martinez maintain that investors should bid their time and not panic sell.

Shiba Inu Team Explains What Shibarium Has Done for SHIB

Lele Jima
-
0
Shiba Inu Team Explains What Shibarium Has Done for SHIB

A Shiba Inu ecosystem team member highlights the significant impact of the ecosystem’s Layer-2 (L2) blockchain Shibarium on Shiba Inu.  

Since Shibarium’s mainnet launch in August 2023, several Shiba Inu community members have questioned its impact on SHIB. 

Even though the team initially developed Shibarium to drive the overall ecosystem growth, reduce transaction costs, and enhance scalability, some users still think these features are yet to translate to tangible gains for SHIB. 

Notably, a community member raised the question again in response to a recent X post from marketing expert, Lucie. Notably, Lucie’s original post highlighted some Shibarium milestones, including onboarding multiple decentralized applications (dApps) and leading to new partnerships. 

Team Highlights Shibarium Impact on SHIB 

Replying to this inquiry, Lucie made a new X post discussing Shibarium’s impact on SHIB. 

Burns 

First, she mentioned how the popular Layer-2 blockchain has reduced the number of SHIB tokens in circulation through burns. According to Lucie, Shibarium has helped to burn over $1.5 million worth of SHIB tokens. She claimed this move directly reduced SHIB’s circulating supply, potentially bolstering scarcity. 

The ecosystem team promised that Shibarium would enhance SHIB’s burn campaign by using a portion of the fees to incinerate the token.

For context, the developers of Shibarium structured Shibarium fees into priority and base fees. The priority fees are allocated to validators on the L2 network. However, 70% of the base fees, originally in BONE, are converted to SHIB and sent to the dead wallet. 

Prior to the launch of the burn portal, the team manually incinerated SHIB using part of Shibarium fees, removing 56 billion SHIB from the supply at the time. However, since the portal launched in August, it has burned over 300 million tokens. 

Other Shibarium Impacts on SHIB 

In addition, Lucie emphasized that Shibarium enables low-cost transactions for SHIB, making the token more accessible for everyday use.   

Furthermore, she said the L2 blockchain helps in building the foundation for future utilities, ranging from staking to decentralized governance. 

Conclusively, the marketing lead claimed that Shibarium has elevated SHIB’s reputation within the crypto market, referencing Forbes’ recognition of Shiba Inu as a testament to Shibarium’s impact on the token.  

In the meantime, Shibarium has continued to register strong user activity, as reflected in the daily transaction volume, which has remained above 4 million over the past few weeks. 

So far, Shibarium has processed 673.35 million transactions, with the daily count currently standing at 4.72 million. The transaction volume surge will further help remove more SHIB tokens from circulation.

Currently, 410.74 trillion SHIB have been permanently removed from the circulating supply, with 6.08 million tokens burned in the past day, according to data from Shibburn.  

Shibarium also boasts 2.01 million wallet addresses, 8.47 million total blocks, and an average block time of 5.0 seconds. 

1...1,0611,0621,063...2,662Page 1,062 of 2,662