Shiba Inu price lags behind despite massive spike in Shibarium transactions and SHIB token burn

Shiba Inu price is struggling to wipe out its losses from the past week. SHIB price declined 3.42% in the past seven days. The meme coin’s Layer 2 chain Shibarium noted a spike in activity, however the development failed to act as a catalyst for SHIB price.

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Shiba Inu scaling solution hit new milestone

Shibarium’s transaction volume exceeded 1.5 million, marking a milestone in the Layer 2 chain’s user activity, based on data from Shibariumscan. The scaling solution is key to SHIB ecosystem token holders, for bridging Ethereum, BONE, and other tokens to Shiba Inu’s Layer 2 chain.

Despite the rising transaction activity on Shiba Inu’s scaling solution, the update failed to fuel a recovery in SHIB price. The burn rate of SHIB tokens picked up pace with nearly 80% increase overnight, 61.96 million Shiba Inu tokens were burned, early on Saturday.

Burning tokens removes them from circulation, effectively reducing the supply of SHIB across exchanges and in turn reducing the selling pressure on the meme coin. Therefore, it holds significance as a catalyst, alongside other metrics.

SHIB’s social dominance, an indicator that measures the mentions of Shiba Inu across social media platforms, is on the rise. Social dominance started rising on September 7, as seen in the chart from crypto intelligence tracker Santiment. 

SHIB social dominance vs SHIB price

The rise in social dominance is typically followed by a SHIB price recovery, as seen on August 5, August 12, August 29. The spike in social dominance is followed by a peak in SHIB price. At the time of writing, SHIB price is in an upward trend that started after August 17. SHIB is exchanging hands at $0.00000760 on Binance. Despite the developments in SHIB, the meme coin’s price is yet to erase losses from the past week.