The meme coin Shiba Inu has recorded a growth spurt of almost 40 percent since the beginning of 2023 and it continues to register gains. But what’s fuelling this rally? Tag along to find out.
Shiba Inu has been one of the top performers of the year so far. The meme coin has recorded a growth spurt of almost 40 percent since the beginning of 2023 and it continues to register gains. But what’s fuelling this rally? Tag along to find out.
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The launch of Shibarium
Shiba Inu’s recent growth spurt can be credited to a Jan 6 Twitter post from the meme coin’s developers. The post shed light on the launch of Shibarium, a layer 2 blockchain solution that Shiba Inu fans have been eagerly awaiting.
Shibarium is an exclusive layer 2 protocol developed by the team behind the token. The core objective of this L2 solution is to shift SHIB transactions from the Ethereum mainchain to a separate network which is much faster. Shibarium will do this by deploying optimistic rollups, a scaling solution that helps to bundle off-chain transactions and record them as a single transaction on the main Ethereum chain, thereby reducing congestion. In addition, the Shibarium protocol will also introduce a unique mechanism termed ‘flash loans’ which will enable the users to borrow assets as short-term loans without the need for any collateral.
The team also informed the Shiba Inu fans that every transaction conducted on the Shibarium Layer 2 blockchain will eventually burn more Shiba Inu coins. Until now, out of the total 1 quadrillion supply of SHIB tokens, 40 percent of SHIB tokens have been burnt already. This piece of news resonated with the fans who are keen on watching the developers burning more coins on the network. It has been a primary focus for the SHIB community.
Just a few days prior, SHIB developers also confirmed that BONE will be the only functional token that can be used in the Shibarium ecosystem. It will serve as the primary token used for gas fees and other transactions on the network. As soon as the news broke out, BONE prices spiked by almost 20 percent.
According to the Twitter post, the Shibarium protocol will be launched in early 2023 and it could cause a further spike for the meme coin.
A new listing
Another reason behind the incredible performance of Shiba Inu can be credited to the news of the token’s listing on a reputed exchange. On January 18, Upbit, which is the largest cryptocurrency exchange in South Korea announced that they would list Shiba Inu against the Korean Won. The meme coin jumped by 20 percent following this development.
Top 100 ETH whales buying SHIB en masse
The top 100 ETH whale addresses have been showing significant interest in Shiba Inu over the last week or so. On Jan 18, Whalestats, a website that provides analysis for ETH whale addresses, revealed that SHIB had overtaken the Curve DAO token (CRV) to become the most traded token amongst the top 100 ETH wallet addresses. Following this development, SHIB spiked 22 percent, jumping from $0.00001057 early on Jan 18 to $0.00001287 later that evening.
Shiba Inu has been soaring since the start of 2023. The crypto market is on course for a potential reversal, and Shiba Inu has been at the forefront of the uptrend. It may be worth mentioning that, on Jan 19, a single whale address dumped almost 443 billion SHIB tokens, worth $5.1 million. Initially, this caused the prices to dip by 9 percent. However, SHIB was able to recover and is currently changing hands at $0.00001139, up 2.59 percent over the last 24 hours.
(Edited by : Anushka Sharma)