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Shibarium Transactions Crash 85%, Shiba Inu Burns Drop 78%, What’s Going On?

Bitcoinist

Bitcoin News / Bitcoinist 74 Views

Shibarium daily transactions have witnessed an 85% crash, while Shiba Inu burns have dropped by 78%. This has raised concerns in the SHIB community, considering the impact they have on the Shiba Inu price. 

The Shibarium Transactions And Shiba Inu Burns

Shibariumscan data shows that the daily transactions on the layer-2 network crashed from 4.76 million on October 26 to 699,690 on October 27. Meanwhile, Shibbburn data shows that the Shiba Inu burn rate dropped by 78% in the last 24 hours, with 9.7 million SHIB tokens burnt in this period. 

This drop in Shibarium’s daily transactions and Shiba Inu burns are correlated as the burn rate typically spikes when there are more transactions on the layer-2 network. This is because the network has committed to using the base fees earned on the network to buy back and burn SHIB tokens. 

Meanwhile, the crash in daily transactions on the Shibarium network looks to be a correction, considering that the network’s daily transactions spiked from 20,000 to millions in just a few days. Therefore, this could simply be a cooling-off period before the daily transactions on the network reach new highs. 

Shibarium’s daily transactions will likely spike again, considering that the Shiba Inu marketing lead, Lucie, recently revealed that the SHIB Shiboshi NFT collection, initially launched on Ethereum, is being bridged to Shibarium. Shiboshi holders have already indicated that they are bridging their NFTs. As such, this move could drive more activity to the layer-2 network. 

Lucie also revealed that these NFT collections will enjoy a strategic upgrade on the layer-2 network. According to her, these NFTs will gain new features and roles in the Shiba Inu ecosystem. Shiboshi holders will also enjoy access to exclusive events and rewards. The Shiba Inu marketing lead added that Shiboshis will play a role in future expansions across the SHIB ecosystem. 

A SHIB Price Recovery Could Follow

The Shiba Inu price is down almost 12% in the last seven days, indicating a bearish sentiment towards the meme coin at the moment. However, SHIB could enjoy a significant price recovery as Shibarium’s daily transactions and Shiba Inu burns pick up again. 

The SHIB burns, in particular, always present a bullish outlook for the meme coin whenever they surge since the Shiba Inu price will become more valuable as more coins are burnt. 

The first target will be for the SHIB price to recover above the psychological price level of $0.00002. Expert Oscar Ramos also reaffirmed his belief in the meme coin, stating he is confident that the SHIB explosion is imminent. 

At the time of writing, the Shiba Inu price is trading at around $0.000017, down in the last 24 hours, according to data from CoinMarketCap. 

Shiba Inu price chart from Tradingview.com (Shibarium)
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