Shiba Inu (SHIB) Price Soars 4% Daily as Exchange Reserves Keep Declining

SHIB Flashes Green Again

As observed on CoinGecko, many leading cryptocurrencies have headed north today (October 9). Most have registered mild gains, while Shiba Inu (SHIB) is among the top performers.

Its price is up 4% on a 24-hour scale, currently trading at around $0.00001786. Meanwhile, the valuation has increased by nearly 40% in the past 30 days thanks to the mini bull run witnessed at the end of September.

Key Elements Drive SHIB’s Rally

The resurgence aligns with the plunging SHIB exchange reserves. According to CryptoQuant, the figure has been on a downfall in the last year, signaling a major shift from centralized platforms toward self-custody methods. This could be interpreted as a bullish signal since it reduces the immediate selling pressure.

Another element suggesting that SHIB’s rally could continue in the short term is the meme coin’s burning mechanism. The burn rate is up over 400% in the last 24 hours, resulting in almost 3 million tokens being sent to a null address.

The USD equivalent of the stash may be insignificant, but continuous efforts in that field will make Shiba Inu scarcer and possibly more valuable (assuming demand keeps its levels or increases).

Large Transactions and Shibarium’s Struggles

Large Transactions, a momentum oscillator gauging the number of transactions greater than $100,000, is also on the rise. It has jumped by 5.5% daily (according to IntoTheBlock), flashing the bullish sign.

The further progress of Shiba Inu’s layer-2 blockchain solution – Shibarium – has also been touted as a factor that could boost the price of the meme coin. However, the protocol has hit numerous targets in the past several months, it has been underperforming lately. Daily transactions have been hovering below 10,000 since the beginning of October, compared to the millions at the start of 2024.

Conclusion

Shiba Inu’s recent price surge is likely driven by key elements such as lower exchange reserves and increased token burns. With the meme coin’s price up 4% on a 24-hour scale, it’s essential for investors to keep a close eye on the market. The continuous efforts in Shibarium’s development and the ongoing shift toward self-custody methods could also boost the price of SHIB in the short term. However, it’s crucial to remember that the market is unpredictable, and investing in cryptocurrencies always carries risks.

FAQs

Q: What is Shiba Inu’s current price?

A: Shiba Inu’s current price is around $0.00001786.

Q: What is the reason behind SHIB’s recent price surge?

A: The reasons behind SHIB’s recent price surge include lower exchange reserves and increased token burns.

Q: What is Shibarium, and what is its purpose?

A: Shibarium is a layer-2 blockchain solution designed to enhance scalability, lower transaction fees, and improve speed for Shiba Inu. Its purpose is to foster the development of Shiba Inu.

Q: What is Large Transactions, and how has it affected SHIB’s price?

A: Large Transactions is a momentum oscillator that gauges the number of transactions greater than $100,000. It has jumped by 5.5% daily, flashing a bullish sign and contributing to SHIB’s price increase.

Q: Why have Shibarium’s daily transactions decreased?

A: Shibarium’s daily transactions have decreased due to underperformance lately, with daily transactions hovering below 10,000 since the beginning of October, compared to the millions at the start of 2024.

Q: What is the significance of SHIB’s burning mechanism?

A: The burning mechanism is significant as it results in almost 3 million tokens being sent to a null address, making Shiba Inu scarcer and possibly more valuable.

Q: What is CryptoQuant, and what role does it play in monitoring SHIB’s exchange reserves?

A: CryptoQuant is a platform that monitors SHIB’s exchange reserves. According to CryptoQuant, the figure has been on a downfall in the last year, signaling a major shift from centralized platforms toward self-custody methods.