TL;DR
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Daily transactions on Shibarium soared nearly 2,000%, signaling renewed interest that could drive SHIB’s price up.
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A massive token burn and declining exchange balances might also be setting the stage for a surge.
What May Fuel a Pump?
Shiba Inu (SHIB) hasn’t been in its best shape lately, with its price dumping by over 20% in the past month. However, some factors suggest that the asset might once again press the gas pedal for a renewed bull run.
One of those is the resurgence of the layer-2 scaling solution Shibarium. Over the past month, daily transactions processed on the network dipped to very low levels. However, the figure exploded to almost 1.5 million on March 13, representing a nearly 2,000% increase on a 24-hour scale.
Shibarium is specifically designed to foster the development of the Shiba Inu ecosystem, and according to some industry participants, its further advancement could trigger upward pressure on the price.
Last week, the popular analyst Davinci Jeremie suggested that SHIB could go “to the moon,” but this would depend on the protocol’s progress.
“I like Shiba Inu, as you know, and I think it will do relatively well in this cycle, but it may not go as high as you expect. I think Shiba Inu has a lot of utility now that they have Shibarium, and basically, it’s a chain that you can actually run all kinds of applications.
However, nobody is using it, and there are no applications for using your tokens on Shibarium yet. If they get that solved, Shiba Inu will go to the moon,” Davinci stated.
Shiba Inu’s burn rate is the next bullish element on the list. Over the last 24 hours, the team and community have destroyed more than 500 million tokens, representing a 27,700% daily spike. The program’s ultimate goal is to reduce the tremendous circulating supply of SHIB, possibly making it more valuable (assuming demand remains constant or rises).
Shiba Inu’s exchange netflow also hints at a potential price pump in the short term. According to CryptoQuant’s data, the figure has been predominantly negative in the past week, indicating that investors might have shifted toward self-custody methods. This, in turn, lowers the immediate selling pressure.
Underwater SHIB Holders Pile up
As mentioned above, Shiba Inu’s valuation has been on a downtrend in the past month, which has negatively affected its investors. IntoTheBlock’s data shows that currently, over 62% of those having exposure to the meme coin are sitting on some paper losses. 33% are profitable, while 5% are break-even.
It is worth noting that the share is still far from the worrying figures observed in September 2023. Back then, the entire meme coin sector was bleeding heavily, and almost 90% of the SHIB holders were underwater.
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