Despite several attempts to breach the $0.00001 level in the past week, Shiba Inu (SHIB) has consistently fallen short. Still, its persistence can be linked to several on-chain activities, one of which is the burning of SHIB.
Shibarium’s Transaction Surge Ignites Burning Mechanism
Shibarium, the layer-2 blockchain designed for scaling Shiba Inu transactions, has witnessed a remarkable upsurge in activity. Days ago, the Shiba Inu community witnessed a nearly 40% increase in new entrants, as most transactions were from new addresses.
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Also, in the last 24 hours, the network saw a 200% increase in transactions, jumping from one million to almost three million. This marks the highest level since January 8th, when transactions peaked at nearly four million.
This transaction surge is crucial for Shiba Inu’s price performance, as the network burns some base transaction fees, with plans for automating the burning process in the future. This deflationary mechanism, by reducing the circulating supply, can potentially contribute to price appreciation.
Shibarium TVL: Back on the Rise
The increase in user transactions on Shibarium might be linked to the network’s expanding DeFi activity. According to DeFilLama, a prominent DeFi tracker, the Total Value Locked (TVL) on Shibarium has risen close to $1 million.
Since late January, when the TVL dipped to around $765,000, the network has attracted an additional $250,000 in capital. This growth signifies growing investor interest and potential user influx, further bolstering the network’s ecosystem.
Recent Integrations Fuel Visibility
Shibarium’s recent integrations with leading cryptocurrency trackers like CoinGecko and CoinMarketCap have exposed it to millions of potential new users. These listings enhance the network’s visibility and accessibility, potentially attracting more developers and users to its growing ecosystem.
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While Shiba Inu currently sits at $0.000009608, hovering close to another retest of the $0.00001 barrier, the combined effect of Shibarium’s activity, rising TVL, and strategic integrations paint an optimistic picture.
The burning mechanism fueled by transactions and the growing DeFi ecosystem on Shibarium creates a compelling narrative for potential price appreciation. Although breaking the $0.00001 resistance might require additional catalysts, the current developments suggest that Shiba Inu (SHIB) is poised for a possible upward trajectory.
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