SHIB’s price could soon see a surge, backed by key factors signaling a potential upswing in the short term. Developments in SHIB’s layer-2 blockchain solution and a resurgence of the meme coin sector may fuel this rally.
Shiba Inu (SHIB), like numerous other cryptocurrencies, has experienced underperformance in recent days, with a 3% price decline over a two-week period according to CoinGecko’s data. Yet, key metrics and factors suggest that the correction could be nearing its conclusion.
Factors Fueling Potential Growth for Shiba Inu (SHIB)
CryptoQuant data reveals that SHIB exchange netflow has remained positive only once in the past eight days. This shift from centralized exchanges to self-custody methods is viewed as bullish, as it lessens immediate selling pressure.
SHIB Exchange Netflow, Source: CryptoQuant
Additionally, SHIB’s burning program has been noteworthy. The burn rate surged multiple times in recent weeks, resulting in over 9 billion tokens destroyed since the start of 2024. This mechanism aims to diminish SHIB’s vast circulating supply, potentially increasing its scarcity and value over time.
An important development occurred earlier this week with the team behind Shibarium, SHIB’s layer-2 blockchain solution, introducing a significant update. This update is designed to streamline the manual token burning process and automate the entire system.
Some experts believe that further enhancements to the L2 scaling solution could drive SHIB’s potential upswing. Shibarium, launched in August last year, aims to enhance the meme coin’s ecosystem by reducing transaction fees and enhancing speed.
Meme Coin Sector Influence on Potential SHIB Rally
A significant factor that could drive a rally for SHIB is a potential resurgence in the meme coin sector. Meme coins often exhibit a tendency to move in tandem, and currently, many are showing positive performance.
This trend is particularly notable for meme coins built on Solana, which have experienced significant upswings in recent weeks.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News
Author
