This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Shiba Inu (SHIB), the second-largest meme coin by market capitalization, has garnered significant attention despite the recent downturn in the crypto market. With gains of over 14 million percent during the 2021 bull run, SHIB has attracted a large number of investors hoping to capitalize on future market cycles. The coin has amassed more than 1.3 million non-zero addresses on the Ethereum network, as well as additional support on other chains.However, the path to reaching 1 cent for SHIB is challenging due to the diminishing returns and fierce competition from other digital assets in the same category. Despite this, the Shiba Inu core developers, led by Shytoshi Kusama, have been actively addressing concerns and fostering a strong online community. The development team has introduced the Shibarium layer two scaling solution, which has become a leading web3 development platform.The Shibarium network boasts a total value locked (TVL) of approximately $681k and supports various DeFi applications, including popular DEXes like MARSWAP, ChewySwap, and DogSwap. This network enables fast, secure, and cost-effective transactions within the Shiba Inu ecosystem. Additionally, the auto-burn mechanism implemented by Shibarium contributes to SHIB’s deflationary nature. In the past 24 hours alone, the burn rate reached about 17,270 percent, resulting in a significant reduction in the token supply.From a technical standpoint, SHIB’s price has been consolidating within a macro descending triangle pattern for the past two years. To reach 1 cent, SHIB must attract strong holders to counteract the buy-and-dump narrative commonly associated with meme coins. On a weekly timeframe, the price needs to consistently close above the 50 Moving Average (MA) to break the macro falling trend.In conclusion, while there is enthusiasm for SHIB to reach 1 cent, it faces significant challenges due to competition and diminishing returns. However, the Shiba Inu development team’s efforts to address concerns and build a strong community, along with the implementation of the Shibarium network, provide a solid foundation for potential growth.