Benzinga - After facing a challenging period this year, the Shiba Inu (CRYPTO: SHIB) sister tokens appears to have hit a near-term bottom earlier this week and is now showing signs of a turnaround.
What Happened: Over the past few days, the meme-inspired crypto has been gaining momentum, bringing some hope to its investors.
Bone ShibaSwap (CRYPTO: BONE), the governance token of ShibaSwap, a decentralized exchange that belongs to the Shiba Inu coin project, has been outperforming.
BONE rallied 95.06% in the last 30 days, outpacing Dogecoin (CRYPTO: DOGE), Shiba Inu, Pepe Coin (CRYPTO: PEPE)
Dogecoin was up 7%, Shiba Inu was up 20.29% and Pepe Coin was up 56% in 30 days.
Last week, Shiba Inu developer Shytoshi Kusama wrote that Shibarium, a layer-2 solution is expected to go live after an upcoming Toronto conference in August.
Shibarium is expected to address scalability issues and reduce transaction fees through off-chain systems.
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Why It Matters: Layer 2 technology refers to the implementation of independent blockchains on layer-1 protocols.
These off-chain systems play a crucial role in addressing scalability issues and managing data congestion by consolidating multiple off-chain transactions into a single layer 1 transaction. As a result, this approach significantly reduces data loads and associated fees, providing a more efficient and cost-effective solution.
Data from Shibburn, a platform that tracks the burn rate of Shiba Inu, reveals a remarkable spike of 3876% in the burn rate within the last 24 hours. A staggering total of over 569 million meme tokens has been burned during this surge.
Burning tokens refers to the intentional removal of tokens from circulation. Typically, tokens are burned as a mechanism to control inflation and increase scarcity, potentially boosting the value of the remaining tokens.
Price Action: At the time of writing, BONE was trading at $1.32, down 8.19% in the last 24 hours, trading at $1.10, as per data from Benzinga Pro.
Photo Courtesy: Shutterstock.com
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