Oct 22, 2024
6thTrade
Shiba Inu has seen a strong performance over the past month, with its price surging by 30%. While the coin is slightly down today (October 21), several key factors suggest that this rally could be far from over.
Shibarium’s Comeback Fuels Optimism
One of the most encouraging signs for Shiba Inu is the resurgence of its layer-2 scaling solution, Shibarium. In just the last two days, the network has seen a dramatic spike in daily transactions—324,000 on one day, followed by 242,000 the next. The last time the network saw such activity was back in April. On top of that, other metrics, like the number of active and new accounts, have soared.
This uptick signals that more users are engaging with the Shiba Inu ecosystem, and investors may interpret this as a sign of growing confidence and adoption, which could draw in more capital. $SHIB
Burn Rate Skyrockets
Shiba Inu’s burning mechanism is another factor contributing to the bullish outlook. In the past 24 hours, the burn rate shot up nearly 400%, leading to 6.3 million SHIB tokens being destroyed. By reducing the circulating supply, the burn program aims to make SHIB more scarce, which could potentially drive up the coin's value if demand stays steady or increases.
With over 583 trillion SHIB tokens currently in circulation and 410.7 trillion already removed from the market, the burn mechanism is a key element that long-term holders are watching closely.
Meme Coin Momentum
The meme coin sector itself has been a powerhouse lately. Dogecoin (DOGE), the leader of the pack, has risen by almost 30% this week. Meanwhile, other meme coins like Bonk Inu (BONK) and Floki Inu (FLOKI) have posted significant gains over the same period.
Today’s standout, however, is Cat in a Dogs World (MEW), which surged by double digits to reach an all-time high of around $0.01. The rally followed South Korean crypto exchange Upbit’s decision to list the coin, sparking fresh demand and enthusiasm for this meme coin newcomer.
A Bearish Note
While the overall market environment seems positive, there is one concerning factor for Shiba Inu: the SHIB exchange netflow. According to CryptoQuant, the netflow has been predominantly positive over the past few days. This suggests that more investors are moving their SHIB from self-custody wallets to centralized exchanges, which could increase selling pressure and potentially lead to a pullback in the short term.
Shiba Inu’s recent performance, combined with the resurgence of Shibarium, the accelerating burn rate, and the momentum within the meme coin sector, all point to the possibility of further gains. However, caution is advised, as the positive netflow to exchanges could signal some near-term volatility. Investors should keep an eye on the balance between these bullish and bearish factors to gauge Shiba Inu’s next move.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments are highly volatile and can result in significant financial loss. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. The views expressed in this article are those of the author and do not necessarily reflect the opinions of the publisher or any affiliated parties. Investing in cryptocurrencies carries inherent risks, and past performance is not indicative of future results. Proceed with caution.
