The memecoin resurgence appears to have faded, but that has not stopped the Shiba Inu token (SHIB) from stealing some of the limelight. On July 5th, SHIB was one of the tokens accounting for the highest transaction fees, which was indicative of a surge in activity around it.
Recent data suggest that the SHIB network has recorded significant growth. Another underlying trend that supports the bullish narrative is that the asset’s supply on exchanges is hovering close to the lowest level since 2022.
According to the latest analysis conducted by Santiment, Shiba Inu (SHIB) saw a big rise in new daily addresses created on Wednesday. Despite the underwhelming price performance, the network consistently recorded over 2,500 per day in the past few weeks.
On further evaluation, the crypto analytic firm said the current focus on SHIB could be interpreted as a sign of market saturation or possible future decline. On the flip side, the trend could breathe new life into a previously “under-the-radar” token, as per Santiment.
It is also important to note that the daily active addresses for SHIB were lackluster before this surge in interest, which essentially demonstrates a “newfound” demand for the token.
The price of SHIB has heavily retraced this year. But the developments surrounding Shibarium updates have managed to catalyze small rallies for the memecoin. Recently, a new functionality was unveiled that will affect NFTs within the upcoming Shibarium – the metaverse and NFT-focused layer 2 blockchain expected to go live later this year.
According to the updates by developer Shytoshi Kusama, the upcoming blockchain will include blockchain gaming, “decentralized” entertainment, account abstraction, and international governance, among others.
In an attempt to push prices up, SHIB’s burn mechanism has been slowly reducing the token supply. But the price has not reacted notably to the burns so far. Hence, the launch of the project’s layer 2 is expected to increase its burn rate capacity to trillions each month.
Speculations are rife in the SHIB community about Shibarium boosting the burn rate, even as the team behind the ecosystem has not divulged any information regarding the same.