TL;DR

• Jeremie Davinci sees SHIB soaring if Shibarium’s adoption and utility issues are addressed.
• The price may also benefit from Shiba Inu’s token burning mechanism, which aims to reduce the circulating supply, alongside a potential bull run in the broader cryptocurrency market.

SHIB Can Explode if This Problem Gets Solved

Despite underperforming in the past few months, the popular meme coin remains the subject of bullish price predictions. One of those came from the well-known figure in the cryptocurrency space – Jeremie Davinci.

To the uninitiated ones, the analyst has been promoting Bitcoin (BTC) as a long-term investment and has been a vocal supporter of the cryptocurrency for many years. In a video from 2013, he advised people to purchase the asset when its price stood at a mere $1.

Earlier this week, he suggested that Shiba Inu (SHIB) could go “to the moon,” but this progress would rely heavily on Shibarium’s advancement. 

“I like Shiba Inu, as you know, and I think it will do relatively well in this cycle, but it may not go as high as you expect. I think Shiba Inu has a lot of utility now that they have Shibarium, and basically, it’s a chain that you can actually run all kinds of applications.

However, nobody is using it, and there are no applications for using your tokens on Shibarium yet. If they get that solved, Shiba Inu will go to the moon,” Davinci stated on X.

Shibarium serves as the meme coin’s layer-2 blockchain solution and is specifically designed to foster its development. It aims to reduce transaction fees, enhance scalability, and improve speed. 

During the first months of the year, the protocol made the headlines by processing multi-million transactions daily. In February, the total number of transactions on the network surpassed 900 million. Over the past several weeks, though, Shibarium substantially stalled its progress.

The decline might signal lower user activity or challenges in adoption or usage by developers and dApp creators. This, in turn, could lead to less demand for SHIB tokens and a potential downward pressure on the valuation. 

Additional Catalysts

Another factor that might positively impact the price of the self-proclaimed Dogecoin killer is the Shiba Inu burning mechanism.

Its ultimate goal is to reduce the tremendous circulating supply of the asset, and substantial burns combined with non-decreasing demand should have a positive effect on the valuation. Since adopting the program, the team and the community have sent over 410.7 trillion tokens to a dead wallet, leaving approximately 584.3 trillion in circulation (which remains quite significant).

Last but not least, SHIB’s price rally might depend on the overall condition of the cryptocurrency market. Meme coins often mimic the ongoing trend in the sector, meaning they could head north in the event of a renewed bull run for BTC and the leading altcoins. 

The post Shiba Inu (SHIB) ‘to the Moon’ But Under This Crucial Condition (Bitcoin Advocate Weighs in) appeared first on CryptoPotato.