Shiba Inu's Recent Price Fluctuation: Nearly 50%?

Data from the Shibarium browser shows that the daily transaction volume on the network has dropped significantly since the start of the new year. Just over 4 million transactions were processed on January 2 and 3. This decline is significant, as the average number of transactions in Shibarium exceeded 7 million for most of last December.

December 29 was the last time Shibarium had more than 7 million daily transactions. Since then, the number has been on a downward trend, dropping to 6 million on December 30 and 5 million on December 31.

On January 1, things looked set to turn around as the network's daily trading volume rebounded to over 6 million. But this was not the case, and it continued to fall the next day. Since Shibarium's role in SHIB growth has become apparent, the number of daily transactions on the Layer 2 network has become even more important. The Shibarium team has pledged to convert a portion of the transaction fees generated in the network into SHIB and burn these tokens. Therefore, the more transactions on the network, the more SHIB will be burned.

These SHIB burns have the potential to have a positive impact on the price of SHIB, as its value may increase as more crypto tokens are withdrawn from circulation. So far, more than 410 trillion SHIB have been sent to Shiba Inu's burn Wallet, with Shibarium contributing a significant portion of this number.

At the same time, recent developments suggest that the Shiba Inu team may be looking to improve the usefulness of BONE. SHIB Token has been the focus of the Shiba Inu ecosystem for some time now. However, with Shiba Inu's head of marketing, Lucie, recently turning her attention to promoting Dog Coin, it looks like BONE Token will be joining in.

In the X (formerly known as Twitter) post, Lucie mentions several projects that will be launched on the Layer 2 network and points out how users will need Dog coins to access them. BONE was originally created as the native Token of ShibaSwap, and BONE has enjoyed greater utility since the launch of Shibarium.

BONE happens to be the gas Token of the layer 2 network. It is worth noting that the increase in the price of BONE may also affect the burning of SHIB, as the team can acquire and burn more meme coins.

(Source: Scott Matherson)