According to recent news, Shiba Inu can now be used as collateral for futures contracts on Kraken.
This will do much to improve its utility and adoption.
The Shiba Inu burn rate surged by 140,000% following the Kraken announcement, with over 96 million SHIB tokens destroyed.
Shiba Inu's price chart shows a post-breakout consolidation from a descending wedge formation and a possible rebound.
Investors should watch for resistance levels at $0.00001578, $0.00002218, $0.00002667, $0.00003116, and $0.00004569.
Shiba Inu, the second largest memecoin, has taken another step towards widespread adoption this week, as Kraken—a major crypto exchange—announced that it can now be used as collateral for futures contracts.
This means that traders can now use their SHIB holdings to gain exposure to over 200 perpetual futures on the platform.
This has marked a major milestone for $SHIB and the Shiba Inu Community as a whole.
In addition to SHIB, Kraken also supports other memecoins like Dogwifhat and Bonk.
Kraken has been busy expanding the collateral options list for a while now.
It is doing this as a way to provide traders with more flexibility.
This way, the exchange allows its customers to deposit several collateral currencies into a single wallet, including crypto and fiat currencies like the US dollar and the euro.
Recall that in August 2022, the exchange added Cardano as collateral before including the likes of SHIB, WIF and BONK.
This comes amid the exchange’s attempts to broaden its offerings, allowing traders to convert non-collateral tokens into an accepted currency before they can be used in futures trading.
Shiba Inu's listing on Kraken resulted from a successful campaign led by the community to secure listings on major exchanges.
Kraken listed SHIB as a tradeable asset in late 2021 and the most recent addition of the memecoin as futures collateral is a testament to this growth.
Shiba Inu’s burn rate has reacted to the news, according to data from ShibBurn.
The available data shows that the memecoin’s burn rate has spiked by nearly 140,000% in just 24 hours, with over 96 million SHIB tokens being destroyed.
The majority of these tokens were burned in a single transaction, around 10 hours before Kraken’s announcement.
Shiba Inu’s burn rate
Interestingly, earlier in the month, Shiba Inu’s Shibarium introduced its own burning mechanism called the “Burn Portal”, which uses a portion of the $BONE transaction fees paid for each transaction to buy and then burn SHIB off the open market.
According to Shiba Inu’s charts, the memecoin is attempting to finalize its recent breakout from the descending wedge formation shown below:
Shiba Inu’s price performance:
The memecoin experienced a rejection from the $0.00001578 zone, cutting its post-breakout rally short.
However, Shiba Inu has retested the wedge's upper trendline and is waiting for a trigger to push it towards the upside.
Investors should wait for a break above $0.00001578 to confirm a new higher high and a breakout from the ongoing consolidation before jumping in.
In summary, the resistance zones to watch out for include $0.00001578, $0.00002218, $0.00002667, $0.00003116 and $0.00004569.
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