- Shibarium daily transactions jumping by 64% over the week
- SHIB’s supply on exchanges fell sharply, suggesting accumulation by holders
Shibarium, the layer-2 (L2) blockchain of the Shiba Inu [SHIB] ecosystem, announced a major UI upgrade. It’s aimed at improving user experience and broadening options for network interactions.
According to Shibarium, the redesign would make the network faster and enhance wallet compatibility by onboarding giants such as MetaMask, Coinbase Wallet, and Trust wallet.
Current state of Shibarium
Launched in August 2023, Shibarium was a planned step by the Shiba Inu ecosystem to rise above its memecoin roots. As per data retrieved from Shibarium Explorer by AMBCrypto, while there has been significant buzz, it has since handled about 417 million transactions.
The network has been especially buzzing with activity over the past week, with daily transaction jumping by 64%. In fact, the count hit a monthly peak of 958k less than 7 days ago.
Source: Shibarium Scan
Assessing the impact on SHIB
Since each Shibarium transaction automatically results in some SHIBs getting burned i.e, removed from circulation, the ecosystem’s primary native token saw significant deflationary pressure over the week, as per data from Shibburn.
However, the supply shock failed to act as a positive catalyst for SHIB. To the contrary, the second-largest memecoin plunged by 17% in value over the week, according to CoinMarketCap.
Will Bitcoin’s halving help?
Bitcoin’s [BTC] halving could bring about a change in fortunes for SHIB. While we don’t have a historical reference to assess this since SHIB didn’t exist during the last halving, other major coins including Ethereum [ETH] and Dogecoin [DOGE] appreciated dramatically and climbed to their highs within a year of the last episode.
Read SHIB’s Price Prediction 2024-25
This fact was not lost on large holders of SHIB as they steadily added to their positions, as was evidenced by the increase in supply held by top non-exchange addresses. The sharp drop in supply on exchanges supported this narrative as well.
Source: Santiment
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