Shiba Inu – one of the most popular meme coins on the market – has seen some notable increases in important on-chain metrics of Shibarium. The latter is an L2 built on Ethereum designed to service the needs of the Shiba Inu ecosystem.
According to on-chain data from Shibariumscan, the number of daily transactions has increased from roughly 530K on February 9th to around 1.9M yesterday – February 12th. That’s a massive surge of slightly less than 300% in less than a few days.
There isn’t a direct correlation between the number of transactions and SHIB’s price. However, it might be the case that the more TXs are executed, the more SHIB will be transacted. This is an important clarification because of the burning mechanism that the Shiba Inu team has put in place to destroy a massive part of its circulating supply. By reducing the tokens in circulation, the remaining ones might become more valuable. Although this is a game of supply and demand, the fact is that if the supply is decreased while the demand remains the same or increases, the price should go up.
To that end, data from Shibburn shows that in the past 24 hours, the burn rate of SHIB tokens has increased by 70%.
We talk about how Shibarium works in our detailed explanation video that you can find here:
Speaking of the Shiba Inu price, it’s up 8.3% in the past seven days. This might have something to do with the uptick in on-chain activity, but chances are that it’s more or less because of the general market increase.
It’s interesting to see if SHIB will continue increasing in the future. 2024 is shaping up to be an exciting year and meme coins tend to be a lot more volatile compared to traditional cryptocurrencies, so the journey ahead is likely to be wild.