Recent data highlights an alarming downturn in Shibarium’s daily transactions, which have plummeted by 85%, and a significant 78% decrease in Shiba Inu token burns. These figures have sparked apprehension within the SHIB community due to their potential influence on Shiba Inu’s market performance.
Understanding Shibarium Transactions and Shiba Inu Burns
According to Shibariumscan, daily transactions on the layer-2 network fell dramatically from 4.76 million on October 26 to just 699,690 the following day. Concurrently, Shibburn data reveals a 78% drop in the Shiba Inu burn rate, with only 9.7 million SHIB tokens burnt in the last 24 hours. This correlation suggests that transaction volume on Shibarium has a direct impact on the burn rate, as the network uses base fees to repurchase and burn SHIB tokens.
This downturn in daily transactions and burns might represent a corrective phase rather than a permanent decline. Previously, Shibarium’s daily transactions skyrocketed from 20,000 to millions in a short span, suggesting a temporary cooling-off period. The outlook remains optimistic, as transactions are likely to rise again.
Lucie, Shiba Inu’s marketing lead, has disclosed that the SHIB Shiboshi NFT collection, originally launched on Ethereum, is being transitioned to Shibarium. This strategic move could rejuvenate activity on the network as Shiboshi holders begin migrating their NFTs. Furthermore, these collections will undergo enhancements, gaining new features and roles within the Shiba Inu ecosystem. Shiboshi holders will benefit from exclusive events and rewards, with these NFTs playing a pivotal role in future ecosystem expansions.
Potential for a SHIB Price Rebound
The Shiba Inu price has seen a nearly 12% decline over the past week, reflecting a current bearish sentiment. However, a rebound in Shibarium transactions and SHIB burns could pave the way for a significant price recovery.
Increases in SHIB burns historically present a bullish opportunity for this meme coin. As more tokens are burnt, the scarcity increases, potentially leading to a rise in market value. The primary target for recovery is surpassing the psychological price threshold of $0.00002. Industry expert Oscar Ramos has expressed confidence in an impending SHIB price surge.
At present, Shiba Inu is trading at approximately $0.000017, showing a decline over the past 24 hours, per CoinMarketCap data. This analysis, however, suggests that strategic developments and increasing network activity could reverse the current trend, ushering in a period of growth for SHIB.
While the current market conditions for Shiba Inu might seem challenging, the ongoing and planned developments within the ecosystem signify potential for future recovery and growth. Community members and investors will be watching closely as Shibarium’s network dynamics evolve.
