Dog-themed crypto Shiba Inu (SHIB) has underperformed lately as investors focused on new and trending meme tokens such as POPCAT and PEPE.
While the 5% price dip over the past week highlights weakness, recent trends suggest a potential comeback for SHIB.
Shibarium’s daily transactions jump 1,300%
Shiba Inu’s L2 network has seen a significant pause in progress within the last several months.
Nevertheless, Shibarium has seen relief over the past few days, with some crucial indicators resurging to early 2024 highs.
The platform saw daily transactions skyrocketing towards 1.8 million on 22 October, according to Shibariumscan.
That represented a staggering 1,300% 24-hour surge and a swift change in dynamics.
Now, Shibarium’s daily transactions are… 👀 What 👀⁉️
8:14 AM · Oct 23, 2024
Such stats indicate a robust resurgence after Shibarium transactions plunged 99% in March as Solana outshined Ethereum-based projects.
Moreover, active accounts on Shibarium increased to a 1-year peak of above 26,000 on 22 October, confirming renewed interest in the protocol.
Shibarium enhances transaction efficiency and scalability within the SHIB ecosystem to attract more dApp developers.
The L2 aims to improve demand for Shiba Inu with increased utility to boost the meme coin’s price performance.
Meanwhile, Shibarium’s impressive revival will likely enhance investor trust in SHIB. Such confidence will likely draw new players and fresh capital into the meme project.
Thus, Shiba Inu could be among the top gainers in the much-awaited bull run.
SHIB: more to the bullish factors
Shiba Inu’s token burn initiative also suggests potential SHIB price surges (in the near term).
Shibburn data show the burn rate jumped 6,750% within the past day, sending 27,108,433 Shiba Inu tokens removed from circulation.
Source – Shibburn
The initiative aims to make the altcoin deflationary for gradual value growth amid increased scarcity and stable demand.
Also, indicators support SHIB’s near-term recovery. The Chaikin Money Flow has jumped from 17 October lows of -0.20 to +0.03 (on the daily timeframe).
That shows cash flowing into the meme token over the past week, reflecting trust in imminent recoveries.
Moreover, the Relative Strength Index at 58 suggests room for upside price actions.
Current SHIB price movement
The second-largest meme token by value traded at $0.00001768 after losing over 2% in the past 24 hours.
Source – Coinmarketcap
SHIB displays notable bearish dominance, and the 30% decline in daily trading volume suggests near-term weakness.
Shiba Inu’s downbeat mode comes as bears dominate the digital assets space, dragging the overall crypto market cap down 1.44% in the past 24 hours to $2.28 trillion.
Nevertheless, pundits predict a massive rebound for the market after the prevailing dip. Optimistic ecosystem developments set SHIB for early revivals upon broad-based bull runs.
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