Shiba Inu's Shibarium has experienced an unprecedented 760% surge in daily transactions, indicating a bullish trajectory for the meme coin. This substantial increase has sparked inquiries into the factors driving this growth, with insights offered by Shiba Inu’s Marketing Lead, Lucie.
Data from Shibariumscan reveals that the layer-2 network's daily transactions saw a dramatic rise between October 18 and 19, climbing from 28,110 to 324,590. This daily transaction peak is the highest recorded in over a month, auguring well for Shiba Inu's prospects.
Previously, Shibarium’s activity had been markedly low for much of the year, often dipping below 20,000 daily transactions. With 242,890 transactions recorded on October 20, the current trend points to a consistent upward trajectory. This uptrend could significantly boost Shiba Inu's price, as increased layer-2 activity can lead to more burns of SHIB through transaction fees. A portion of these fees is converted to Shiba Inu tokens and burned, meaning that a rise in daily transactions results in more fees and thus more tokens burned.
A notable 9% increase in SHIB's price since October's onset corresponds with a surge in the burn rate. Shibburn data indicates a 941% rise in the burn rate over the past week, with 322.98 million tokens burned in this period. The past 24 hours alone saw a 387% increase, with 6.3 million SHIB tokens burned. Consequently, sustained growth in Shibarium transactions could further accelerate the burn rate and elevate Shiba Inu’s price.
Lucie, an executive from Shiba Inu, has shed light on potential drivers behind the recent spike. She referenced Shibaswap, Shibahub, Shib the Metaverse, and Shib Marketplace as possible influences. Notably, the decentralized exchange (DEX) Shibaswap has been a key factor.
Recent data shows an increase in Shibaswap's trading volumes, contributing substantially to the Shibarium transaction surge. Launched on the Shibarium network in May, the DEX's rising volumes directly increase daily network transactions. Further bolstering the trend, DeFiLlama data indicates an 8% rise in weekly trading volume for the Shibex DEX.