TL;DR
- Shibarium-related metrics have headed north lately, while SHIB’s burn rate exploded by triple digits on a 24-hour scale.
- However, the recent shift from self-custody methods toward exchanges could be interpreted as a bearish factor for the meme coin’s price.
Good News for SHIB Bulls?
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.
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.
Next on the list is Shiba Inu’s burning mechanism. Data shows that the burn rate has skyrocketed by almost 400% in the past 24 hours, resulting in 6.3 million tokens destroyed. The program’s goal is to reduce the circulating supply of SHIB, making it scarcer and potentially more valuable (should demand remain constant or head north).
Currently, there are more than 583 trillion tokens in circulation, with 410.7 trillion already sent to a null address over the years.
The third bullish element is the meme coin sector that has been at the forefront of gains lately. The leader, Dogecoin (DOGE), is up almost 30% weekly, while Bonk Inu (BONK) and Floki Inu (FLOKI) have also seen significant increases for that period.
It is worth mentioning that today’s rock star is Cat in a Dogs World (MEW), which jumped by double digits and hit a new all-time high of approximately $0.01. This happened shortly after the biggest South Korean crypto exchange, Upbit, allowed trading services with the asset.
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.
