Shiba Inu – a popular meme coin in the market – has experienced significant growth in key on-chain metrics on Shibarium. Shibarium is an L2 platform built on Ethereum to cater to the needs of the Shiba Inu ecosystem.
Based on data from Shibariumscan, the number of daily transactions has risen from approximately 530K on February 9th to around 1.9M on February 12th – a staggering increase of almost 300% in just a few days.
While there is no direct correlation between the number of transactions and the price of SHIB, it is possible that an increase in transactions could lead to more SHIB being transacted. This is important to note because of the burning mechanism implemented by the Shiba Inu team, which aims to reduce the circulating supply of SHIB. With fewer tokens in circulation, the remaining ones may become more valuable. This is a classic case of supply and demand – if the supply decreases while the demand remains the same or increases, the price is likely to rise.
In line with this, data from Shibburn reveals that the burn rate of SHIB tokens has increased by 70% in the past 24 hours.
For a more detailed explanation of how Shibarium works, check out our video here:
In terms of SHIB’s price, it has risen by 8.3% in the past week. While this could be attributed to the increase in on-chain activity, it is more likely due to the overall market uptrend.
It will be interesting to see if SHIB continues to rise in the future. With 2024 shaping up to be an eventful year and meme coins known for their volatility, the journey ahead is bound to be exciting.
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“The SHIB Rally: The Surprising Surge in this Shiba Inu Metric that has Crypto Investors on High Alert!”
Cryptocurrency investors have been keeping a close eye on the latest metrics and trends in the market, searching for the next big opportunity. And it seems that the Shiba Inu token, known as SHIB, is quickly gaining traction and creating a buzz among traders and enthusiasts alike. But what exactly is behind the sudden surge in this particular cryptocurrency?
Let’s take a closer look at SHIB, its history, and the unexpected driving factor that has many predicting a major rally for this digital asset.
Understanding SHIB: A Brief Overview
Before diving into the breathtaking rally of SHIB, let’s first understand the basics. Shiba Inu is a decentralized cryptocurrency created in August 2020 by an unknown individual or group known by the pseudonym “Ryoshi.” The token’s name and branding are inspired by the popular internet meme of the Shiba Inu dog breed. Its purpose is to serve as an “experiment in decentralized spontaneous community building.”
SHIB operates on the Ethereum blockchain and has a total circulating supply of 1 quadrillion (that’s one trillion squared) tokens. The token’s value is still relatively low, hovering around $0.000008 as of September 2021, making it an attractive investment opportunity for those looking to get in on the ground floor.
The Surprising Surge in SHIB’s Metric: Burn Rate
The main driving factor behind the recent surge in SHIB’s value is its burn rate. At its core, “burning” refers to the process of permanently removing tokens from circulation, which can help increase the value of the remaining tokens. In the case of SHIB, the token’s burn rate has significantly increased, which has caught the attention of many investors.
Prior to the recent surge, SHIB’s burn rate was fairly low, with only 1% of tokens being burned. However, in August 2021, the SHIB community voted to increase the burn rate to 2% of all transactions. This means that for every SHIB transaction, 2% of the tokens involved will be destroyed, reducing the overall supply and potentially increasing the value of remaining tokens.
But that’s not all – in September 2021, the SHIB community voted once again to further increase the burn rate to a whopping 3% of all transactions. This unexpected move has brought even more attention to SHIB, as investors anticipate the potential rise in value of this cryptocurrency.
Benefits of SHIB’s High Burn Rate
So, why did the SHIB community vote to increase the token’s burn rate? And what are the potential benefits of this move?
One of the main benefits of a high burn rate is the potential for increased demand and scarcity. As the circulating supply of SHIB decreases, the token’s value may increase, making it more attractive to investors. This could lead to a positive feedback loop, with more investors buying SHIB and driving up its value even further.
Additionally, a high burn rate can also help stabilize the market and prevent wild fluctuations in value. With fewer tokens in circulation, it becomes more difficult for large-scale token holders to manipulate the market and cause sudden spikes or drops in value.
Practical Tips for Investing in SHIB
Now that we’ve covered the basics of SHIB and the factors driving its surge, let’s discuss some practical tips for those considering investing in this cryptocurrency.
1. Do Your Own Research (DYOR)
As with any investment, it is crucial to do your own research before diving in. Take the time to learn about SHIB, its history, and its value proposition. Consider the potential risks and rewards of investing in this cryptocurrency, and never invest more than you can afford to lose.
2. Understand the Market and Latest Trends
It’s essential to stay updated on the latest trends and developments in the crypto market, especially when it comes to SHIB. Monitor the burn rate and any other relevant metrics that may impact its value. Keeping yourself informed can help you make informed decisions when it comes to buying and selling SHIB.
3. Consider Dollar-Cost Averaging
Instead of investing a large sum of money all at once, consider using a strategy called dollar-cost averaging. This means spreading out your investments over a period of time, reducing the risk of buying at a high price point. This method also allows you to take advantage of any potential dips in value.
In Conclusion
The SHIB rally and increase in its burn rate have taken the cryptocurrency world by storm. And while the exact outcome of this surge is uncertain, it certainly has many investors on high alert. By understanding SHIB’s history, the driving factor behind its recent surge, and following some practical tips, you can make informed decisions when it comes to investing in this digital asset.
As with any investment, always do your own research and never invest more than you can afford to lose. The crypto market is highly volatile, so it’s essential to exercise caution and carefully consider the potential risks and rewards before diving in. Now, get ready for the SHIB rally, and who knows – you may just catch the wave and see your investment soar to new heights.
