Shiba Inu, the second-largest meme coin by market capitalization, has recently seen a significant increase in daily active addresses. This surge, with over 3,500 daily active addresses, represents a 13% increase. The rise in active addresses indicates a growing interest in the asset and potentially a higher demand from investors. This trend could have a positive impact on the price of Shiba Inu, especially if the supply remains steady.
One critical aspect that may influence the value of SHIB is the burning mechanism implemented by the project’s team. The burning mechanism aims to reduce the circulating supply of the coin. So far, over 410 trillion SHIB tokens, approximately 41% of the maximum total supply, have been destroyed. Recently, there was an explosion in the burn rate, resulting in approximately 86 million tokens being removed from circulation in a single day. The team is working on automating the burning process to simplify and streamline the system.
Another factor that could potentially boost the price of SHIB is the progress of Shibarium, a layer-2 blockchain solution introduced in the summer of 2023. This innovation aims to enhance Shiba Inu’s competitiveness by improving transaction speed and reducing fees. Recently, Shibarium reached a significant milestone, with total transactions surpassing 360 million. Additionally, the number of wallet addresses associated with Shibarium is approaching 1.5 million. These developments could position Shiba Inu favorably compared to its competitors in the market.
Despite the recent underperformance of Shiba Inu’s price, several essential indicators suggest a positive outlook for the meme coin. The increased daily active addresses, the burning mechanism to reduce supply, and the ongoing development of Shibarium all contribute to the potential for a price rally in the future. Investors and enthusiasts should closely monitor these developments as they could significantly impact the value of SHIB in the coming days.