Daily Shibarium transactions are down 85%, while Shiba Inu burns are down 78%. This has led to concerns in the region SHIB communityconsidering the impact they have on the Shiba Inu price.
The Shibarium Trades and Shiba Inu Burns
Shibarium scan data shows that the number of daily transactions on the Layer-2 network fell from 4.76 million on October 26 to 699,690 on October 27. Shibbburn data shows that the Burning rate of Shiba Inu fell by 78% in the last 24 hours, burning 9.7 million SHIB tokens during this period.
This drop in Shibarium’s daily transactions and Shiba Inu burns are correlated, as the burn rate typically increases as more transactions occur 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 appears to be a correction, as the network’s daily transactions increased from 20,000 to millions in just a few days. Therefore, this could simply be a cooling-off period before daily transactions on the network reach new highs.
Shibarium’s daily trades are likely to rise again, given that the Shiba Inu Marketing Leader, Lucierecently revealed that the SHIB Shiboshi NFT collection, initially launched on Ethereum, will be bridged to Shibarium. Shiboshi holders have already indicated they are bridging their NFTs. As such, this move could drive more activity to the layer 2 network.
Lucie too revealed that these NFT collections will receive a strategic upgrade on the Layer-2 network. According to her, these NFTs will take on new functions and roles in the Shiba Inu ecosystem. Shiboshi holders also get access to exclusive events and rewards. The Shiba Inu marketing leader added that Shiboshis will play a role in future expansions of the SHIB ecosystem.
A SHIB price recovery could follow
The Shiba Inu price has fallen by almost 12% over the past seven days, indicating that bearish sentiment towards the meme coin right now. However, SHIB could enjoy a significant price recovery as daily trades of Shibarium and Shiba Inu burns pick up again.
The SHIB burns in particular always provide a bullish outlook for the meme coin whenever they rise since the 20th century Shiba Inu Award will become more valuable as more coins are burned.
The first goal is for the SHIB price to rise above psychological price level of $0.00002. Expert Oscar Ramos too reconfirmed his belief in the meme coin, stating that he is confident that the SHIB explosion is imminent.
At the time of writing, the Shiba Inu price is trading around $0.000017, down in the past 24 hours, according to facts from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com