On October 9, Shiba Inu (SHIB) emerged as a standout performer in the cryptocurrency market, with its price climbing by 4% over the past 24 hours, currently trading at approximately $0.00001786. This price increase marks a nearly 40% gain over the past month, largely driven by the mini bull run experienced at the end of September.
A key factor behind SHIB’s recent resurgence is the decline in its exchange reserves. According to data from CryptoQuant, SHIB's reserves on centralized platforms have been decreasing over the past year. This shift towards self-custody methods could be interpreted as a bullish signal for SHIB, as lower reserves typically indicate reduced selling pressure from holders looking to cash out.
Another positive development for Shiba Inu is its token burning mechanism, which has seen an impressive uptick of over 400% in the last 24 hours. Nearly 3 million SHIB tokens have been sent to a null address, contributing to the overall scarcity of the asset. Although the USD equivalent of the burned tokens may be relatively small, continuous burning efforts could enhance SHIB's value, especially if demand remains stable or grows.
Data from IntoTheBlock indicates that the number of large transactions (those exceeding $100,000) has increased by 5.5% daily. This momentum oscillator suggests heightened activity and interest in SHIB, further reinforcing the bullish sentiment among traders.
While there are numerous bullish indicators for SHIB, the performance of its layer-2 blockchain solution, Shibarium, has raised some concerns. Despite achieving several milestones in recent months, Shibarium has struggled to maintain momentum. Daily transactions have remained below 10,000 since the beginning of October, a stark contrast to the millions recorded earlier in the year.
Shibarium aims to improve the Shiba Inu ecosystem by enhancing scalability, reducing transaction fees, and increasing transaction speed. As the platform continues to evolve, its success could play a crucial role in supporting SHIB's price and adoption.
The recent gains in Shiba Inu’s price, combined with the decline in exchange reserves, rising burn rates, and increased large transactions, present a promising outlook for the meme coin. However, the performance of Shibarium remains a critical factor that could either enhance or hinder SHIB’s long-term potential. Investors and traders should keep a close watch on these developments as they unfold in the dynamic cryptocurrency landscape. For more insights on Shibarium and the Shiba Inu ecosystem, stay tuned for our upcoming updates.
October 2024, Cryptoniteuae