The number of transactions on the Shibarium second-level blockchain has increased a hundredfold in four months. Shiba Inu (SHIB) price can’t boast the same success.
According to the ShibariumScan service, the number of transactions on the Shiba Inu blockchain has exceeded 300 million, while more than 2.77 million blocks have already been created in the network.
Shibarium grows
As of September 2023, only 3 million transactions were recorded on Shibarium. Since then, their number has grown approximately 100 times, including due to the integration of Gate.io crypto exchanges. Partnerships with major industry players have attracted new users to the ecosystem.
Shibarium’s popularity peaked in December. At that time, the network processed an average of more than 7 million transactions daily. However, in January, network activity dropped to 2 million transactions per day. According to DeFiLlama, at the time of publication, $825 million worth of funds are locked in the Shibarium network, which is almost half the peak value reached on August 30, 2023 at $1.47 billion.
SHIB Changes the Trend
Last week, LookOnChain, a service that tracks large cryptocurrency transactions, recorded a large transfer of SHIB from Binance to a wallet address allegedly associated with Justin Sun. In total, assets worth $4.47 million were withdrawn from the crypto exchange, including 79.33 billion SHIB worth about $752 thousand.
Investors typically move coins from crypto exchanges to wallets for long-term storage. This means that they do not intend to get rid of their assets in the near future. This trend reduces selling pressure and strengthens bullish sentiment.
Indeed, the SHIB token has experienced a notable reversal, recording gains in the last 24 hours following recent losses. According to reports price data, the price of SHIB is currently trading around $0.00000946, up 2.3% in the last 24 hours.
Meanwhile, the short-term dynamics of SHIB do not yet reflect a bullish reversal. Over the course of a day, the cryptocurrency fell in price by 3.5%, over the week – by 5%.
Technical analysis of SHIB also suggests that the coin still has risks of further decline to the channel support line in the $0.0000080 area.
How does Shibarium work?
The solution, called Shibarium, is part of a broader plan to position Shiba Inu as a serious blockchain project. Shibarium is designed to be a scalable, fast and low-cost solution for decentralized applications (dApps), especially in the metaverse and gaming sector. The network will potentially help the Shiba Inu ecosystem significantly reduce transaction costs and increase speed.
