The total number of addresses holding onto the meme-inspired cryptocurrency Shiba Inu ($SHIB) on the Ethereum blockchain has recently surpassed 1.3 million, ahead of the expected launch of the project’s layer-2 scaling solution Shibarium.
According to data from the Ethereum blockchain pulled by CoinMarketCap, 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 hodling it.
Notably, Shiba Inu investors have shown they aren’t planning on selling en masse, as the median time that users on Coinbase hold onto the meme-inspired cryptocurrency before either selling it or moving it to an external address has surpassed the 230-day mark.
The number of Shiba Inu holders has been growing ahead of the expected launch of Shibarium, an upcoming layer-2 solution that aims to improve the Shiba Inu ecosystem by providing faster transactions at a lower cost, among other important improvements. There are still a lot of questions surrounding the release and utility of Shibarium, however.
Shibarium will work alongside Ethereum to process transactions on the Shibarium ecosystem. It will take a large cut of the transaction load the Shiba Inu ecosystem currently brings onto Ethereum to process it on the Shibarium chain.
Further, the layer-2 will remove tokens from circulating to reduce supply and help boost the price. This is known as a token burning mechanism, in which tokens are sent to wallets that can only receive tokens but not send them, also called Dead Wallets. Shibarium will burn $SHIB and require $BONE for transactions.
Earlier this month, SHIB was, along with the native token of the “blockchain of blockchains” Polkadot ($DOT) and others, been added to Binance’s Proof of Reserves verification system.
Binance’s Proof of Reserves system essentially allows users to verify through a cryptographic tool called a Merkle Tree to verify that the cryptocurrency exchange has their assets in reserve, backing their deposited funds on the platform.
Featured image via Pixabay.