According to CryptoPotato, Shiba Inu's Shibarium, an L2 built on Ethereum for the Shiba Inu ecosystem, has experienced a considerable increase in daily transactions and burn rate. On-chain data from Shibariumscan reveals that the number of daily transactions rose from approximately 530K on February 9th to around 1.9M on February 12th, a surge of nearly 300% in just a few days. Although there isn't a direct correlation between the number of transactions and SHIB's price, the increase in transactions could lead to more SHIB being transacted due to the burning mechanism implemented by the Shiba Inu team to reduce the circulating supply of tokens.
As the supply of tokens decreases and demand remains the same or increases, the price of the remaining tokens may rise. Data from Shibburn indicates that the burn rate of SHIB tokens has increased by 70% in the past 24 hours. In terms of Shiba Inu's price, it has increased by 8.3% over the past week, which could be attributed to the uptick in on-chain activity or the general market increase. With meme coins typically being more volatile than traditional cryptocurrencies, the future of SHIB's price remains uncertain, but the year 2024 is expected to be an exciting one for the market.
