u.today
The popular Shiba Inu (SHIB) meme coin and its layer-2 solution, Shibarium, show a connection based on their most visible performance charts. The SHIB price has delivered potential for price recovery but is still far from its July high of $0.000017.
Correlation between Shibarium and Shiba Inu
According to data from Shibariumscan, daily transactions as of this writing are over 4,000. However, the growth trajectory over the past month has been unsteady. Between July 12 and Aug. 12, daily transactions on Shibarium peaked at over 8,000 and dropped to 1,000.
SHIB is also experiencing the same unsteady movement, as seen on its price chart.
While SHIB’s price spiked in early July, it has since dropped to lower levels. In the last 24 hours, SHIB declined marginally by 0.08% to trade at $0.00001364. However, the trading volume increased by 2.2% to $231 million.
Expectations for SHIB and Shibarium
The introduction of the burn mechanism on Shibarium is expected to reduce the total amount of SHIB tokens in circulation. The process involves converting 70% of transaction fees to SHIB and removing them from circulation. The goal is to boost the token’s price by creating scarcity. Moreover, the remaining share of the base fees will be allocated toward ecosystem development.
For SHIB, a previous report from U.Today shows the token may enjoy a positive surge in August. The report cited historical trends, indicating a median profitability of 3.36% and an average profitability of 2.67% for the month.
Furthermore, there is a possibility that buyers are entering the market now to accumulate SHIB, as the selling pressure may be lessening. This can be deduced as the SHIB chart demonstrated that it bounced and formed a higher low after finding support at the $0.000013 level.