The total number of addresses holding the meme-inspired cryptocurrency Shiba Inu ($SHIB) on the Ethereum blockchain has topped 1.3 million, ahead of the project’s layer-2 scaling solution Shibarium’s planned deployment.
According to CoinMarketCap statistics, which was first reported on by Finbold, there are now 1.305 million Ethereum addresses with SHIB in them, with the cryptocurrency surpassing the 1.3 million milestone earlier this month after starting the year with 1.275 million addresses.
Interestingly, Shiba Inu investors have demonstrated that they do not intend to sell in large numbers, since the median period that Coinbase customers hold onto the meme-inspired cryptocurrency before selling it or moving it to an external address has reached the 230-day mark.
Shibarium, a planned layer-2 solution that intends to improve the Shiba Inu ecosystem by delivering speedier transactions at a reduced cost, among other significant improvements, has seen an increase in the number of Shiba Inu holders. Yet, there are many unanswered uncertainties regarding Shibarium’s release and utility.
Shibarium will conduct transactions on the Shibarium ecosystem alongside Ethereum. The Shibarium chain will process a significant portion of the transaction load that the Shiba Inu ecosystem now brings to Ethereum.
Furthermore, the layer-2 will remove tokens from circulation in order to lower supply and raise the price. This is referred to as a token burning mechanism, in which tokens are delivered to wallets that can only receive but not send tokens, also known as Dead Wallets. Shibarium transactions will consume $SHIB and demand $BONE.
SHIB, along with the native token of the “blockchain of blockchains” Polkadot ($DOT) and others, was added to Binance’s Proof of Reserves verification system earlier this month.
Binance’s Proof of Reserves method simply allows consumers to verify that the cryptocurrency exchange has their assets in reserve, backing their deposited cash on the platform, using a cryptographic technique called a Merkle Tree.