Key Shiba Inu (SHIB) indicator explodes almost 400% – details

TL;DR

Shiba Inu has seen significant increases in high transaction volumes and daily active addresses, despite the recent 6% drop in value. Positive developments in SHIB’s ecosystem, including an increase in token burn rate and improvements to its Shibarium layer-2 blockchain, suggest potential for future price growth.

Resurgence of SHIB

While the price of Shiba Inu (SHIB) is down 6% on a 24-hour scale, some important metrics related to its ecosystem have headed north.

Data from IntoTheBlock shows that the aggregate daily volume, where each transaction is over $100,000, has passed the $60 million mark. This figure represents a 382% increase compared to the previous day. The number of daily active addresses is also increasing, albeit more modestly.

The increase in such large transactions may affect the price of SHIB. For example, large buy orders can reduce liquidity by removing a substantial amount of tokens from the market, which can increase value due to decreased supply. On the other hand, sell orders can trigger the opposite scenario as more assets become available.

Whale trades can also influence investor sentiment, fueling additional enthusiasm among traders and thus driving the flow of fresh capital.

Other factors contributing to a SHIB rally

The burn rate and advancement of the layer 2 blockchain solution, Shibarium, are additional elements that can cause a SHIB bull run. As reported by CryptoPotato, the burn rate exploded over 4,000% on May 6, resulting in over 81 million tokens destroyed.

The ultimate goal of the mechanism is to reduce the huge supply of meme currency, making it scarcer and potentially more valuable in the future.

Shibarium has also made great strides by undergoing two major upgrades. The first came in mid-April when the team released a new user interface (UI) update, describing it as “faster, smoother and more accessible than ever.” It aimed to improve compatibility with popular self-custodial wallets, such as MetaMask, Coinbase Wallet, and Trust Wallet.

Shortly after, the developers introduced another development via a “hard fork”. Its goal is to improve the user experience, empower the developer and innovator community, and implement faster block processing times.

“We’re also smoothing out variations in transaction fees during times of high traffic, making costs more predictable and fair for everyone. This ensures our platform remains affordable and accessible,” the team added.

Those who want to learn more about Shibarium, feel free to check out our dedicated video below:

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