Popular meme coin Shiba Inu (SHIB) has seen its price rise over 20% in the past week, sparked by growing excitement and activities around its recently launched Layer 2 scaling solution, Shibarium. As noted by Twitter user @BezosCrypto, Shibarium has already accumulated over 1.1 million BONE tokens, equivalent to over $1 million USD and 100 billion SHIB tokens burned. More transactions on the network means more SHIB burns, reducing overall supply.
@BezosCrypto stated that just four months after launch, Shibarium has already smashed records with its rate of accumulation and burns. This has led to anticipation that as activity continues growing on Shibarium, the pace of burns could exponentially increase.
Shiba Inu’s Evolution as an Asset
@Digarch argues that with the launch of Shibarium, SHIB has transitioned from just a meme coin into a true crypto asset. SHIB will be used as a governance token on the network. Additionally, all transactions on Shibarium result in a portion of fees being burned. @Digarch pointed to the first such burn as evidence of this deflationary mechanism’s impact.
More SHIB Burns Could Make Price Skyrocket
The increased pace of Shiba Inu coin burns was further underscored in the past 24 hours. According to Shibburn, there have now been more than 22 million SHIB tokens burned over the last day, representing over a 100% increase from the previous day’s rate.
This accelerated rate of burns in such a short timeframe exemplifies the explosive potential of activity on the Shibarium platform. As more users interact with the network each day, the number of transactions rises exponentially. Each transaction incurs a small SHIB burn fee that adds up significantly when multiplied by hundreds of thousands of daily transactions.
If this rate of engagement continues ascending, expert projections estimate the Shiba Inu circulating supply could verifiably decrease into the hundreds of billions within months. For a formerly inflationary meme token, this radical shift towards provable deflation explains why investors see tremendous possible upside in SHIB based predominantly on activity and adoption of Shibarium.
Read also:
- Chainlink Could Finally Rebound from Here as 17K Addresses Buy 47 Million LINK at Crucial Support
- Whales Panic, Dump Over $3.5 Million ORDI Following Vulnerability Announcement in the Incoming Bitcoin Core Upgrade
- Overlooked Bitcoin (BTC) and Cardano (ADA)? Explore This Top Crypto Opportunity in 2023
As activity rises on Shibarium alongside ongoing burns, experts predict decreasing supply could lead more speculative investors to buy SHIB in anticipation of higher values. Whether community excitement and platform growth can be maintained long-term remains to be seen. Yet in the short term, Shibarium appears to be the main catalyst behind renewed interest and upside price movement for the previously beleaguered Shiba Inu.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
