Shiba Inu’s (SHIB) brand-new layer-2 scaling solution Shibarium is still expanding quickly, which has increased interest in staking for the alternative token that powers its gas fees.
The total number of transactions over Shibarium has topped 2.7 million , according to new data from SHIB blockchain tracker Shibariumscan, while the average daily volume is a little over 200,000.
Over 1.24 million different wallet addresses have used the protocol’s services. Additionally, statistics from Shibarium itself indicate that there are about 27.13 million Bone Shibaswaps (BONE).
Shibarium’s team is committed to making it one of the greatest layer-2 protocols available, creator Kaal Dhairya declared, after the platform reached over 1 million transactions and wallet addresses earlier this month.
Dhairya then explained the team has established itself as one of the most affordable and quick layer-2 networks out there, and added it intends to keep it that way.
“I also read somewhere that some people are unhappy that the gas prices are very low in the network, which made me chuckle,” he commented.
Due to technical difficulties brought on by the sudden surge in user activity, Shibarium, which went live in the middle of August, was forced to temporarily go offline a few weeks later. This was because crypto assets worth millions of dollars became stranded across its Ethereum (ETH) bridge.
But the project has since resumed operations with a new monitoring system that, according to chief engineer Shytoshi Kusama, will stop technical problems brought on by spikes in network traffic.
Most memecoin owners are still sitting on unrealized losses, according to a recent analysis by IntoTheBlock . Shiba Inu investors appear to be the most negatively impacted, with only 11% of them making a profit.
Despite all of the SHIB-related advancements, the asset’s price has recently been declining (along with the cryptocurrency market as a whole).
The downturn in the market has also had a significant impact on those who have given money to the so-called “Dogecoin killer” Shiba Inu: 89% of them are holding losses on paper.
SHIB is currently trading at $0.00000739 and is following the same trend as other alternative coins like Dogecoin and Cardano. The achievement of Shibarium, however, might be a sign of Shiba Inu’s long-term viability in the cryptosphere.
The $0.000010 range for SHIB has a substantial supply wall. This suggests that a sizeable amount of SHIB was purchased between $0.000008 and $0.000014. Getting over this supply wall could shift the course of events. If SHIB breaks through the $0.000010 resistance, it may soar and redefine its peak benchmarks.
The fundamental goal of the Shiba Inu burning is to make the remaining tokens more valuable by reducing their supply.
The burn rate tries to combat the inflationary pressures that could develop when more tokens are produced or issued by lowering the circulating supply.
This process is consistent with the fundamentals of tokenomics, which hold that the market value of a token is mostly determined by supply and demand dynamics.
The Shiba Inu’s burn process is rather simple. A tiny portion of the transaction fee is always transferred to a burn or null address whenever a transaction is made on the Shiba Inu network.
The burn address is an anonymous wallet address that cannot be retrieved. The supply of Shiba Inu tokens is then decreased by the removal from circulation of the tokens delivered to the burn address.
The number of SHIB tokens available for issuance is directly impacted by the burn rate. The supply gets smaller as more tokens are burned, which can result in a rise in token value.
This week, SHIB meme coin ecosystem started with renewed confidence for bulls since one of the protocol’s major growth metrics was on a bullish track. The burn rate of the meme coin was increased significantly over the last week, amounting to an overnight burning of exactly 181,859,002 tokens.
However, Friday showed an almost 50% decrease in token burn.
Be it as it may, the Shiba Inu burn rate symbolizes a variety of ideas, many of which are favorable for the virtual currency. First, the burn rate highlights the token’s tenacious efforts to lower its enormous circulating supply.
The value of the token as a whole is raised by this reduction. The SHIB burn rate also shows that the SHIB is being actively used for the rapidly expanding number of transactions or utilities that are emerging within the Shiba Inu ecosystem. As intended, when there is active usage, the tokens are cast into the fire, releasing a portion of the burning fees.
Impact of SHIB burn rate on price The most recent increase offers Shiba Inu yet another chance to pick up the pace it has lost after suffering for the majority of this month with its price growth.
Shiba Inu is currently trading at $0.00000739, up about 1.73% from its previous price. Although this reflects the overall sentiment in the crypto industry as a whole, the burn rate is anticipated to cause a resurrection that will assist in boosting the price in the coming hours.
The majority of the records for SHIB burn rates have been followed by a significant price increase, setting the norm in this regard. Overall, rekindled interest in the protocol’s deflationary state and the benefits Shibarium offers are sufficient to steer it in a favorable path this week.