Shibarium: A Resurgence in Transactions and Price
TL;DR
- Shibarium saw a 70% spike in daily transactions, signaling renewed activity.
- SHIB’s price surged nearly 10%, but caution is advised due to possible overbought conditions.
Finally a Resurgence
Shiba Inu’s layer-2 scaling solution has seen low activity in the past several weeks, stalling its progress observed at the start of the year. However, some metrics have taken off in the last 24 hours.
Data shows that the network processed 7,715 new transactions on September 18, a 70% increase compared to the 4,537 on September 17. Other Shibarium indicators that have headed north on a daily scale include the number of new verified contracts and active accounts.
The L2 blockchain solution officially went live last August. It is specifically designed to foster the development of the Shiba Inu ecosystem by lowering transaction fees, increasing speed, and enhancing scalability.
Not long ago, the team adopted a burning mechanism called “Burn Portal.” Its ultimate goal is to reduce the circulating supply of SHIB tokens, thus making them scarcer and potentially more valuable in time.
The program is directly tied to Shibarium’s blockchain operations. Each time a transaction occurs on the network, a fraction of the costs paid in Bone ShibaSwap (BONE) is used to purchase SHIB tokens from the open market. That amount is then transferred to a null address.
In contrast, the original mechanism employed by Shiba Inu depends largely on community-driven initiatives and voluntary token burns by holders instead of an automated or protocol-driven process.
For more updates on the ecosystem, make sure to check out our Shibarium news.
SHIB Price Outlook
Some industry participants believe the further advancement of Shibarium could be among the factors triggering a bull run for Shiba Inu. The price of the meme coin has soared by almost 10% in the past 24 hours, currently trading at around $0.00001427 (per CoinGecko’s data).
The uptick coincides with an overall resurgence of the cryptocurrency market where Bitcoin (BTC) exceeded $63,000 for the first time since late-August. The bullish environment was likely fueled by the US Federal Reserve, which cut the interest rates by 0.5%.
Despite SHIB’s impressive comeback, traders should enter the ecosystem cautiously due to the volatile nature of the asset and its rising Relative Strength Index (RSI). The technical analysis tool measures the change and speed of price movements and helps traders assess overbought or oversold conditions.
It varies from 0 to 100, with readings above 70 signaling overbought territory and the potential for a price pullback. The ratio reached that mark earlier today (September 19).
Conclusion
In conclusion, Shibarium has seen a significant resurgence in transactions and price, potentially signaling a new wave of activity in the Shiba Inu ecosystem. With the further advancement of Shibarium and the overall positive sentiment in the cryptocurrency market, SHIB’s price may continue to rise.
However, traders should be cautious and monitor the situation closely, as the volatile nature of the asset and its rising RSI suggest that a price pullback may be imminent.
FAQs
Q: What is Shibarium?
A: Shibarium is a layer-2 scaling solution designed to foster the development of the Shiba Inu ecosystem by lowering transaction fees, increasing speed, and enhancing scalability.
Q: What is the purpose of the Burn Portal mechanism?
A: The Burn Portal mechanism is a burning mechanism that reduces the circulating supply of SHIB tokens, making them scarcer and potentially more valuable in time.
Q: How does Shibarium affect the price of SHIB?
A: The advancement of Shibarium and its increased activity may trigger a bull run for Shiba Inu, potentially leading to a rise in SHIB’s price.
Q: What is the Relative Strength Index (RSI)?
A: The Relative Strength Index (RSI) is a technical analysis tool that measures the change and speed of price movements, helping traders assess overbought or oversold conditions.
Q: How can I stay updated on Shibarium news?
A: You can stay updated on Shibarium news by checking out our Shibarium news section or following Shibarium’s official social media channels.
