Is the SHIB Price Poised for a New Rally?

TL;DR

• Shiba Inu’s Shibarium hit a fresh target, signaling strong user engagement.
• SHIB climbed by 4% to $0.00002305, with increased token burns and reduced exchange inflows signaling a further pump.

Shibarium Keeps Advancing

Shiba Inu’s layer-2 blockchain solution – Shibarium – took center stage on Christmas Day, blasting through yet another major milestone. Data shows that the total transactions processed on the protocol exceeded 700 million.

This can be viewed as a serious achievement, considering the fact that Shibarium officially saw the light of day last summer. Since then, it has undergone some important developments, such as launching a new user interface (UI) update that improves compatibility with popular self-custody wallets like MetaMask, Coinbase Wallet, and Trust Wallet.

Shortly after, the team introduced an update through a hard fork to empower the community of developers and innovators and implement quicker block processing times. It also adopted a burning mechanism, which is a bit different from the original program but has the same purpose.

Shibarium’s ultimate goal is to foster the development of the Shiba Inu ecosystem by reducing transaction costs, improving speed, and enhancing scalability. As such, some market observers believe its further progress could be a vital factor fueling a rally for the meme coin’s price. 

How’s SHIB Doing?

It is worth mentioning that Shibarium’s latest achievement coincides with the resurgence of SHIB’s price. It currently trades at around $0.00002305, representing a 4% rise on a daily scale.

Other elements suggesting that Shiba Inu has yet to experience a substantial rally are the burning program and the SHIB exchange netflow.

The burn rate has jumped by 50% in the past 24 hours, resulting in over 7 million tokens destroyed. Converted in US dollars, the stash is insignificant, but continuous efforts in the field will reduce the circulating supply of the meme coin, making it more scarce and possibly more valuable (assuming demand doesn’t head south).

For its part, the SHIB exchange netflow has been predominantly negative in the last week (according to CryptoQuant’s data), with outflows surpassing inflows during most days. This hints at a shift from centralized platforms toward self-custody methods and could be considered bullish since it diminishes the immediate selling pressure.