Important Shiba Inu Metric Up 100% Amid SHIB Price Rally: Details

TL;DR

Shiba Inu (SHIB) rose 10% on June 5, on a significant increase in whale activity. The rally could also be attributed to the meme coin burning mechanism and the advancements in Shibarium. SHIB on the move again

The cryptocurrency market has been booming today (June 5), with Shiba Inu (SHIB) being one of the top performers. Its price increased by 10% on a 24-hour scale, currently trading at approximately $0.00002612 (according to CoinGecko data).

SHIB Price, Source: CoinGecko

Its resurgence coincides with the increase in the main indicators related to the Shiba Inu ecosystem. Data from IntoTheBlock shows SHIB’s aggregate daily volume (where each transaction is over $100,000) increased to nearly $135 million. The figure represents a jump of 99% compared to what was observed on June 4.

SHIB’s latest revival benefited investors, quite naturally. As of now, 65% of all HODLers are sitting on paper profits, while whales control 73% of the circulating supply.

The situation was very different in September last year, when around 90% of all SHIB investors were underwater.

What could be driving the rally?

The resurgence of SHIB may have been partially fueled by the meme coin combustion mechanism and the subsequent advancement of the layer 2 scaling solution: Shibarium. The burn rate exploded over 10,000% on June 4, while nearly 370 million tokens were destroyed in the past month.

The ultimate goal of the program is to reduce the circulating supply of SHIB, thereby increasing scarcity. The process can lead to an increase in the value of the token over time, if demand remains constant or increases.

For its part, Shibarium passed another milestone at the end of May when the total number of blocks processed on the network exceeded five million. The protocol was officially unveiled last summer and aims to foster the development of the Shiba Inu ecosystem by reducing transaction fees, improving speed and increasing scalability.

Last but not least, we will discuss SHIB’s net exchange flow. In recent days, outflows have exceeded inflows, suggesting a shift from centralized platforms to self-custody methods. This is considered bullish as it reduces immediate selling pressure.

SHIB Exchange Netflow, Source: CryptoQuant SPECIAL OFFER (Sponsored) Binance Free $600 (Excluding CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

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