Shiba Inu (SHIB) Cryptocurrency Rises 5% Amid Increased Transactions, Burn Rate
SHIB records a 5% increase due to rising Shibarium transactions
The cryptocurrency Shiba Inu, better known as SHIB, has recorded a 5% increase in the last 24 hours. This increase is notable as it reverses a week-long downward trend. According to data from CoinMarketCap, the price for SHIB increased by 5% late at night on January 20 between 19:00 UTC and 23:30 UTC. However, a correction followed as impatient traders began to realize profits.
The role of Shibarium in SHIB’s price increase
Although the exact reason for the increase is not yet clear, the increase in SHIB’s burn rate could be a likely explanation. In the last 24 hours, more than 4 million tokens were removed from circulation, exerting a deflationary pressure on SHIB’s market value. The increase in the burn rate seems to be related to an increase in transactions on the ecosystem’s layer-2 blockchain, Shibarium. According to data from Shibariumscan, the number of transactions reached 2.75 million on January 20, the highest value in two weeks.
Large investors continue to bet on SHIB
Despite SHIB’s price development, large investors have made significant investments. According to data from Santiment, the user group holding between 1,000 and 10 million SHIB tokens has significantly increased their holdings in the last month. In addition, SHIB reserves on exchanges continue to decline, with more and more SHIB being found in non-custodial wallets. This is typically interpreted as a broader accumulation trend.
The evolution of the Shiba Inu ecosystem
The Shiba Inu ecosystem made great strides in 2023 by introducing Shibarium L2 and introducing Shib into the Metaverse. These efforts aim to increase the real-world usage of the SHIB token beyond the limited areas of memes and jokes with which it has long been identified.
Sources: CoinMarketCap, Shibariumscan, Santiment