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Shiba Inu’s Shibarium has witnessed a massive 760% spike in daily transactions, which provides a bullish outlook for the meme coin. The spike in daily transactions has raised questions on what could be driving this growth, with Shiba Inu Marketing Lead Lucie providing some options.
Shiba Inu’s Shibarium Sees Massive 760% Spike
Shibariumscan data shows that the daily transactions on the layer-2 network spiked by 760% between October 18 and 19, from 28,110 to 324,590. The 324,590 daily transactions recorded on October 19 represented the highest daily figure in over a month, providing a bullish outlook for Shiba Inu.
This development is significant as Shibarium’s network activity has been notably low since the start of the year, dropping below the 20,000 range for an extended period. This also looks to be the beginning of an uptrend in Shibarium’s daily transactions, as 242,890 daily transactions were recorded on October 20.
This sustained trend could contribute to a significant Shiba Inu price rally, considering how a surge in the layer-2 network’s activity leads to more SHIB burns. A portion of the network’s transaction fees are usually converted to Shiba Inu tokens and automatically burnt. Therefore, increased daily transactions mean more fees earned and more SHIB tokens burnt.
The Shiba Inu burn rate this month has already been impressive, which is one reason the SHIB price is up over 9% since the start of October. Shibburn data shows that there has been a 941% surge in the burn rate in the last seven days, with 322.98 million tokens burnt during this period. Meanwhile, there has been a 387% spike in the burn rate in the last 24 hours, with 6.3 million SHIB burnt during this period.
Therefore, the surge in Shibarium’s daily transactions would help catalyze a further spike in the burn rate and the Shiba Inu price.
What Is Driving The Spike In Daily Transactions?
Shiba Inu’s Executive, Lucie, provided some insights into what could be driving the spike in daily transactions. She mentioned Shibaswap, Shibahub, Shib the Metaverse, or Shib Marketplace while questioning the reason behind the surge. The decentralized exchange (DEX) Shibaswap has undoubtedly contributed to the Shibarium surge.
Shibswap data shows a spike in the exchange’s trading volume in the last few days. The DEX is part of the Shibarium ecosystem, having launched on the network in May earlier this year. As such, a spike in the DEX volume ultimately means more daily transactions on the Shibarium network.
DeFiLlama data shows that the Shibex DEX has also contributed to the Shibarium surge, as the exchange’s weekly trading volume is up almost 8%.
At the time of writing, the Shiba Inu price is trading at around $0.00001918, up almost 3% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
