The second-largest meme coin has performed quite well in the past month, registering a 30% price increase. Despite being slightly in the red today (October 21), some important factors suggest that the rally could continue in the short term.
SHIB Price, Source: CoinGecko
One of those bullish signals is the resurgence of Shiba Inu’s layer-2 scaling solution – Shibarium. Daily transactions on the network have exploded to 324,000 and 242,000 in the past two days, such high figures were last observed in April this year. The number of active accounts, new accounts, and other Shibarium-related metrics have also skyrocketed lately.
The protocol’s revival hints at increased user engagement and growing adoption and utility within the network. Investors may see this as a sign of confidence, triggering a fresh flow of capital toward the ecosystem.
SHIB Price, Source: CoinGecko
It’s Not All Roses and Sunshine
Despite the overall bullish environment, there is one bearish factor that signals a possible pullback for Shiba Inu’s price. This is the SHIB exchange netflow, which according to CryptoQuant, has been predominantly positive in the past several days.
The development suggests that a growing number of investors might have switched from self-custody methods toward centralized platforms, which, in turn, increases the immediate selling pressure.
Conclusion
In conclusion, the recent trend in Shiba Inu’s price is predominantly positive, driven by the resurgence of its layer-2 scaling solution Shibarium, the skyrocketing burn rate, and the meme coin sector’s overall momentum. However, it is essential to acknowledge the potential risk associated with the increasing exchange netflow, which could trigger a short-term pullback.
FAQs
Q: What is Shibarium, and how does it impact Shiba Inu’s price?
A: Shibarium is Shiba Inu’s layer-2 scaling solution, which has seen a significant increase in daily transactions, active accounts, and other related metrics, hinting at increased user engagement and growing adoption.
Q: What is the current trend in Shiba Inu’s price, and what are the key factors driving it?
A: The current trend is predominantly bullish, driven by the resurgence of Shibarium, the skyrocketing burn rate, and the meme coin sector’s overall momentum.
Q: What is the potential risk associated with the increasing exchange netflow, and how might it impact Shiba Inu’s price?
A: The increasing exchange netflow could trigger a short-term pullback in Shiba Inu’s price, as it indicates a growing number of investors switching from self-custody methods toward centralized platforms, increasing immediate selling pressure.
