TL;DR
While the price of Shiba Inu (SHIB) is down 6% on a 24-hour scale, some important metrics related to its ecosystem have headed north.
IntoTheBlock data shows that aggregated daily volume, where each transaction is larger than $100,000, has surpassed the $60 million mark. This figure represents a whopping 382% increase compared to the day before. The number of daily active addresses is also on the rise, albeit in a more modest fashion.
The spike of such significant transactions can impact the SHIB price. For instance, large buy orders can reduce liquidity by taking a substantial amount of tokens off the market, potentially driving the value up due to decreased supply. On the other hand, sell orders can trigger the opposite scenario as more assets will become available.
Whale transactions may also influence investor sentiment, fueling additional enthusiasm among traders and thus propelling the flow of fresh capital.
The burn rate and the advancement of the layer-2 blockchain solution – Shibarium – are additional elements that may cause a SHIB bull run. As CryptoPotato reported, the burn rate exploded by over 4,000% on May 6, resulting in more than 81 million tokens destroyed.
The mechanism’s ultimate goal is to reduce the tremendous supply of the meme coin, making it scarcer and possibly more valuable in the future.
Shibarium has been making great strides, too, by undergoing two major upgrades. The first occurred in mid-April when the team launched a new user interface (UI) update, describing it as “faster, smoother, and more accessible than ever.” It aimed to enhance compatibility with popular self-custody wallets, including MetaMask, Coinbase Wallet, and Trust Wallet.
Shortly after, the developers introduced another development via a “hard fork.” Its goal is to improve user experience, empower the community of developers and innovators, and implement quicker block processing times.
“We are also smoothing out transaction fee variations during high traffic times, making costs more predictable and fair for everyone. This ensures our platform remains affordable and accessible,” the team added.
Those willing to learn more about Shibarium, feel free to take a look at our dedicated video below:
