Massive Increase in This Shiba Inu (SHIB) Metric: Is a Rally Incoming?

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Shi­ba Inu – one of the most pop­u­lar meme coins on the mar­ket – has seen some notable increas­es in impor­tant on-chain met­rics of Shibar­i­um. The lat­ter is an L2 built on Ethereum designed to ser­vice the needs of the Shi­ba Inu ecosystem.

Accord­ing to on-chain data from Shibar­i­um­scan, the num­ber of dai­ly trans­ac­tions has increased from rough­ly 530K on Feb­ru­ary 9th to around 1.9M yes­ter­day – Feb­ru­ary 12th. That’s a mas­sive surge of slight­ly less than 300% in less than a few days.

There isn’t a direct cor­re­la­tion between the num­ber of trans­ac­tions and SHIB’s price. How­ev­er, it might be the case that the more TXs are exe­cut­ed, the more SHIB will be trans­act­ed. This is an impor­tant clar­i­fi­ca­tion because of the burn­ing mech­a­nism that the Shi­ba Inu team has put in place to destroy a mas­sive part of its cir­cu­lat­ing sup­ply. By reduc­ing the tokens in cir­cu­la­tion, the remain­ing ones might become more valu­able. Although this is a game of sup­ply and demand, the fact is that if the sup­ply is decreased while the demand remains the same or increas­es, the price should go up.

To that end, data from Shib­burn shows that in the past 24 hours, the burn rate of SHIB tokens has increased by 70%.

We talk about how Shibar­i­um works in our detailed expla­na­tion video that you can find here:

Speak­ing of the Shi­ba Inu price, it’s up 8.3% in the past sev­en days. This might have some­thing to do with the uptick in on-chain activ­i­ty, but chances are that it’s more or less because of the gen­er­al mar­ket increase.

It’s inter­est­ing to see if SHIB will con­tin­ue increas­ing in the future. 2024 is shap­ing up to be an excit­ing year and meme coins tend to be a lot more volatile com­pared to tra­di­tion­al cryp­tocur­ren­cies, so the jour­ney ahead is like­ly to be wild.

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