SHIB spikes 5% as Shibarium transactions climb

• In the last 24 hours, more than 4 million tokens were removed from circulation.
• Transaction count on L2 network Shibarium hit the highest value in two weeks. 

Popular meme coin Shiba Inu [SHIB] made significant gains in the last 24 hours of trading, reversing a week-long downtrend.

SHIB bounces back

According to AMBCrypto’s reading of CoinMarketCap data, the second-largest meme coin rallied late at night on the 20th of January. SHIB rose 5% between 7 pm UTC and 11:30 pm UTC.

However, a correction ensued as impatient traders started to profit-take.

This caused SHIB to bend and as of this writing, the dog-themed token was exchanging hands at $0.000009557. Nevertheless, SHIB was still 1.78% higher than what it was at the same time the previous day.

Source: CoinMarketCap

Shibarium boosting SHIB?

While a conclusive reason behind the surge was yet to be ascertained, the jump in SHIB’s burn rate remained a likely explanation.

In the last 24 hours, more than 4 million tokens were removed from circulation, exerting deflationary pressure on the market value of SHIB.

In the past 24 hours, there have been a total of 4,061,252 $SHIB tokens burned and 11 transactions. Visit https://t.co/t0eRMnyZel to view the overall total of #SHIB tokens burned, circulating supply, and more. pic.twitter.com/aTYz21DFjv

— Shibburn (@shibburn) January 21, 2024

The jump in burn rate was seemingly tied to an increase in transactions on the ecosystem’s layer-2 blockchain Shibarium.

According to AMBCrypto’s examination of Shibariumscan’s data, the transaction count hit 2.75 million on the 20th of January, the highest in two weeks.

Source: Shibariumscan.io

For the unknown, each transaction on Shibarium automatically results in some SHIBs getting permanently removed from circulation.

Whales continue to hoard SHIB

Unfazed by SHIB’s performance on the price charts, large investors have been making significant moves.

As per data from Santiment, the user cohort holding between 1,000 to 10 million SHIB tokens witnessed a considerable increase in their holdings over the last month.

Source: Santiment

Moreover, SHIB reserves on exchanges continue to deplete, with more number of SHIBs found in non-custodial wallets.

This is typically interpreted as a wider accumulation trend, lending credence to the observations made earlier.

Source: Santiment

Read Shiba Inu’s [SHIB] Price Prediction 2024-25

The Shiba Inu ecosystem took giant strides in 2023 by launching L2 Shibarium and introducing Shib the Metaverse.

These efforts are intended to increase the SHIB token’s real-world utility beyond the limited prisms of memes and jokes with which it has long been identified.