Shiba Inu, the popular meme-based crypto, recently reached a significant new milestone, marking a turning point in its evolution. While the market’s attention is focused on next-generation blockchain developments, Shiba Inu’s Layer 2 solution, Shibarium, continues to surprise with impressive results. This breakthrough, which comes with a notable increase in the price of SHIB, raises questions about the future of this project. But what explains this surge in popularity and what are the implications for the ecosystem?
Shibarium reaches 7 million blocks
The Shibarium Network, launched in August 2023, has just reached a major milestone by processing over 7 million blocks. This development is part of a continued growth trend for Shiba Inu’s Layer 2 solution, designed to reduce transaction fees and improve network scalability. In addition to blocks, the total number of transactions is approaching 420 million, reinforcing the credibility and viability of this solution in the crypto ecosystem. September 24, New smart contracts jumped 700%a strong sign of Shibarium's growing adoption.
This momentum is supported by an increase in verified accounts and contracts, and illustrates the rise of the Shiba Inu community. According to industry experts, this expansion could be a driver for a future rise in the price of SHIB, which has already recorded a 14% increase on a weekly basis.
Reduced supply and increased burn rates for Shiba Inu
Beyond technical progress, another favorable trend supporting the appreciation of the SHIB crypto is the reduction in the available supply on exchanges. Indeed, on-chain data reveals that the supply of SHIB on crypto exchanges has fallen to its lowest level in seven months, indicating a possible shift towards personal custody methods. This reduction in immediate selling pressure could support a further increase in the price.
Additionally, SHIB’s burn rate has spiked over 7,000% in the past 24 hours, with nearly 8 million tokens sent to a null address. While this reduction in supply has only a modest impact in terms of dollar value, these continued efforts could ultimately positively influence the value of SHIB by reducing its overall circulation.
Shibarium’s rise and SHIB’s supply dynamics suggest that the current rally is far from over. Developments around this layer-2 solution, coupled with a reduction in exchange supply and a sharply rising burn rate, suggest growth potential for this memecoin.
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