Shiba Inu, the second-largest meme coin by market capitalization, has been experiencing a surge in daily active addresses. This significant increase, with over 3,500 active addresses representing a 13% rise, indicates a growing interest in the asset. The uptrend could potentially lead to a price rally, as it signifies an increase in demand from investors. If the supply remains stable or grows at a slower pace compared to the demand, it could positively impact the price of SHIB.
One crucial factor that could affect the price of Shiba Inu is the burning mechanism adopted by the team behind the meme coin. The burning mechanism aims to reduce the circulating supply of SHIB tokens. Data reveals that approximately 41% of the maximum total supply, totaling over 410 trillion tokens, has been destroyed. Recently, the burn rate spiked by over 8,500%, removing approximately 86 million tokens from circulation in a single day. The team is working on automating the burning process to simplify it and make it more efficient.
Another essential development that could potentially boost the price of SHIB is the progress of Shibarium, a layer-2 blockchain solution introduced in the summer of 2023. Shibarium aims to enhance Shiba Inu’s performance by improving transaction speed and reducing fees. Recently, the platform achieved a milestone with total transactions surpassing 360 million, and the number of wallet addresses approaching 1.5 million. These advancements could position Shiba Inu as a more competitive player in the cryptocurrency market.
Despite Shiba Inu’s recent underperformance in terms of price, several key indicators suggest a potential price rally in the future. The increase in daily active addresses, the implementation of a burning mechanism, and the progress of Shibarium are all factors that could positively impact the value of SHIB. As the team continues to work on enhancing the coin’s utility and scalability, Shiba Inu could see further growth and adoption in the cryptocurrency space. Investors and enthusiasts alike will be closely monitoring these developments to assess the coin’s potential for the future.