Shiba Inu (SHIB), the world's second-largest memecoin, has been in the news lately due to two key developments: a surge in token burning and the launch of its new reward token, TREAT.
SHIB Burn Rate Spikes
Over 21 million SHIB tokens were burned in the past 24 hours, signifying a significant increase in token removal. According to SHIB burn tracker Shibburn, the SHIB token burn rate surged over 2,229% on Tuesday, bringing the total supply reduction to 410.74 trillion SHIB.
While the burning intensity has subsided somewhat since then, the recent surge has created scarcity. This has led some in the crypto community to speculate that demand for SHIB may rise due to its growing ecosystem and the introduction of TREAT.
SHIB Open Interest Jumps
As the SHIB burn rate surged, Shiba Inu's open interest (OI) also spiked in the last 24 hours. Coinglass reports that 18.91 trillion SHIB tokens, valued at $405 million in derivatives contracts, were opened during this period. This signifies a substantial increase in trading activity within the derivatives market.
TREAT Token Goes Live
The Shiba Inu community officially launched the TREAT token on January 14th. The token debuted on three major crypto exchanges: Bitget, KuCoin, and Gate.io. TREAT's launch completes a strategic set of tokens within the SHIB ecosystem, joining SHIB, LEASH, and BONE.
However, the price of TREAT plunged over 55.6% within the first 24 hours after launch, reaching a low of $0.0005636 on Tuesday. As of this writing, the token trades at around $0.000824 with a market capitalization of $2.73 million, according to CoinMarketCap.
SHYTOSHI Kusama Remains Confident
Despite the initial price drop, SHIB's lead developer, Shytoshi Kusama, remains confident in TREAT's potential. He believes it will unlock new and advanced features, including the highly anticipated Shiba Inu Layer-3 blockchain, which prioritizes data protection.
Venture Capital Backing
In April 2024, several venture capital firms, including Mechanism Capital, Foresight Ventures, Polygon Ventures, and Big Brain Holdings, invested $12 million in TREAT. This signifies their strong belief in TREAT's potential to influence the crypto ecosystem. Along with funding, these firms are also becoming strategic partners for the token's future development.
Why It Matters
The launch of the TREAT token signifies a significant step for Shiba Inu as it expands its ecosystem and opens doors for new engagement and utility opportunities. With Kusama and the team hinting at upcoming projects, all eyes are on SHIB and TREAT to see if a lasting rally is on the horizon.
January 2025, Cryptoniteuae