Shiba Inu’s Shibarium Sees Massive 760% Spike In Daily Transactions, What’s Driving It?

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As a seasoned crypto investor with years of experience under my belt, I must say that the recent 760% spike in daily transactions on Shiba Inu’s Shibarium network has certainly caught my attention. Having witnessed numerous market fluctuations and trends, this surge seems to be more than just a temporary blip.

There’s been an incredible surge of 760% in daily transactions on Shiba Inu‘s platform, Shibarium, which points towards a positive trend for the popular meme coin. This significant increase in transactions has sparked curiosity about what could be fueling this expansion, and Shiba Inu’s Marketing Lead, Lucie, has offered some possible explanations.

Shiba Inu’s Shibarium Sees Massive 760% Spike

On October 19th, the number of daily transactions on the Shibarium layer-2 network skyrocketed by an astounding 760%, climbing from 28,110 to a staggering 324,590. This unprecedented figure for daily transactions on the 19th was the highest in over a month, offering a promising perspective for Shiba Inu.

Remarkably low network activity on Shibarium has been a consistent trend since the start of the year, dipping below 20,000 for an extended timeframe. However, the recent surge in daily transactions suggests a potential reversal of this trend, with a record-breaking 242,890 transactions taking place on October 20. This could be the beginning of an upward trend for Shibarium’s transaction volume.

This prolonged upward trend might trigger a substantial increase in the price of Shiba Inu, given that an escalation in activity on the layer-2 network results in more SHIB tokens being destroyed. Typically, a portion of the network’s transaction fees gets converted into Shiba Inu tokens, which are then automatically burned. Consequently, higher daily transactions lead to greater earnings from fees and a larger quantity of SHIB tokens being burnt.

As an analyst, I’ve noticed that the Shiba Inu token burn rate this month has significantly accelerated, contributing to the price surge of over 9% since October began. According to Shibburn data, the burn rate has experienced a staggering 941% increase in the last week, with approximately 322.98 million SHIB tokens being burned during this timeframe. Additionally, within the past 24 hours, there’s been a remarkable 387% rise in the burn rate, resulting in the burning of around 6.3 million SHIB tokens.

Consequently, an increase in daily transactions on Shibarium is likely to fuel a rise in its burn rate and coin value, boosting the price of Shiba Inu.

What Is Driving The Spike In Daily Transactions?

Shiba Inu’s Executive, Lucie, provided some insights into what could be driving the spike in daily transactions. She mentioned Shibaswap, Shibahub, Shib the Metaverse, or Shib Marketplace while questioning the reason behind the surge. The decentralized exchange (DEX) Shibaswap has undoubtedly contributed to the Shibarium surge. 

From my research perspective, I’ve observed an increase in trading activity on the Shibswap exchange over the past few days. This decentralized exchange (DEX) is integrated within the Shibarium ecosystem, having been launched on the network back in May this year. Therefore, this surge in DEX volume suggests a rise in daily transactions occurring on the Shibarium network itself.

According to DeFiLlama’s findings, it appears that the Shibex DEX has played a role in the rise of Shibarium. This is due to the fact that the trading volume on this platform has increased by nearly 8% on a weekly basis.

As I pen this analysis, the value of Shiba Inu stands approximately at $0.00001918, marking a nearly 3% increase over the past 24 hours, based on information from CoinMarketCap.

Shiba Inu’s Shibarium Sees Massive 760% Spike In Daily Transactions, What’s Driving It?

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2024-10-21 18:41