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Shiba Inu, the famous meme-based cryptocurrency, recently reached a major new milestone that marked a turning point in its development. While the market’s eyes are focused on next-generation blockchain developments, Shibarium, the Shiba Inu layer 2 solution, continues to surprise with impressive results. This progress, which is accompanied by a significant increase in the price of SHIB, raises questions about the future of this project. But what explains this increase in power and what are the implications for the ecosystem?
Shibarium reaches 7 million blocks
Launched in August 2023, the Shibarium network has just reached a major milestone by processing more than 7 million blocks. This development is part of a continued growth trend for the Shiba Inu Layer 2 solution, which aims to reduce transaction fees and improve network scalability. In addition to the blocks, the total number of transactions is close to 420 million, which strengthens the credibility and viability of this solution in the crypto ecosystem. On September 24th, new smart contracts jumped 700%, a strong sign of growing Shibarium adoption.
This momentum is fueled by an increase in verified accounts and contracts and illustrates the rise of the Shiba Inu community. According to industry experts, this expansion could be the driving force for future growth in the price of SHIB, which has already seen an increase of 14% on a weekly basis.
Decrease supply and increase burn rate for Shiba Inu
In addition to technical progress, the appreciation of the SHIB cryptocurrency supports another favorable trend by reducing the supply available on exchanges. Indeed, on-chain data reveals that SHIB supply on crypto exchanges has fallen to its lowest level in seven months, suggesting a possible shift towards personal escrow methods. This reduction in immediate selling pressure could encourage further price growth.
In addition, SHIB’s burn rate has increased by over 7,000% in the last 24 hours, with nearly 8 million tokens sent to the zero address. Although this reduction in supply has only a modest impact in terms of dollar value, this continued effort could ultimately positively affect SHIB’s value by reducing its total circulation.
Shibarium’s rise and SHIB’s supply momentum suggest that the current rally is far from over. Developments around this layer 2 solution, along with reduced supply on exchanges and a skyrocketing burn rate, indicate the growth potential of this memecoin.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. Every day I try to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations and put into perspective the economic and social problems of this ongoing revolution.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.