Shibarium Transactions Crash 85%, Shiba Inu Burns Drop 78%, What’s Going On?

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As a seasoned crypto investor with over a decade of experience navigating bull and bear markets, I must admit that the recent 85% crash in Shibarium daily transactions and 78% drop in Shiba Inu burns has piqued my curiosity rather than alarming me. The meme coin market is notorious for its volatility, and such corrections are to be expected.

Daily transactions on Shibarium have plummeted by 85%, and the rate of Shiba Inu burns has decreased by 78%. These developments have sparked worry within the SHIB community as they may influence the value of Shiba Inu.

The Shibarium Transactions And Shiba Inu Burns

On October 26, Shibariumscan recorded approximately 4.76 million daily transactions on its layer-2 network. However, this number plummeted to about 699,690 transactions the very next day, October 27. Concurrently, data from Shibbburn indicates a significant decrease in the Shiba Inu burn rate over the past 24 hours. The drop was approximately 78%, with around 9.7 million SHIB tokens being burned during this period.

The decrease in daily transactions and token burns on Shibarium seems connected, as the burn rate tends to increase significantly during periods of higher activity on the layer-2 network. This is due to the network’s policy of using the fees generated on the network to repurchase and destroy SHIB tokens.

Currently, it seems like the decrease in daily transactions on the Shibarium network might be a correction. Given that the number of daily transactions skyrocketed from 20,000 to millions within a short span of time, this drop could just be a temporary cooling-off phase before the network’s daily transactions reach even higher numbers.

With Lucie, Shiba Inu’s marketing lead, disclosing the transfer of the SHIB Shiboshi NFT collection from Ethereum to Shibarium, it’s reasonable to expect a rise in daily transactions on Shibarium. This is because Shiboshi holders have shown interest in moving their NFTs, suggesting increased activity on the layer-2 network.

Lucie further disclosed that these NFT collections will undergo an advantageous update on a layer-2 platform. She explained that these NFTs will acquire fresh attributes and positions within the Shiba Inu community. Owners of Shiboshis can anticipate participation in unique events and benefits. Moreover, Lucie mentioned that Shiboshis will contribute to future growth within the SHIB universe.

A SHIB Price Recovery Could Follow

1) Over the past week, the cost of Shiba Inu has dropped by about 12%, suggesting that investors currently have a negative outlook on the meme currency. But, there’s potential for a substantial price increase in Shiba Inu if daily transactions on Shibarium resume and more Shiba Inu coins get burned again.

Burning SHIB tokens consistently tends to create a positive or bullish perspective for the meme currency, as an increase in burns drives up the value of the remaining Shiba Inu coins due to reduced supply.

Initially, our aim is to push the Shiba Inu (SHIB) price beyond the significant threshold of $0.00002. Renowned expert Oscar Ramos remains optimistic about the meme coin, expressing confidence that a major surge in SHIB is imminent.

currently, the cost of Shiba Inu is approximately $0.000017 per unit, having decreased over the past 24 hours, based on information from CoinMarketCap.

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2024-10-28 18:11