Shiba Inu Cryptocurrency Surges 10% Amid Shibarium’s Success
In Brief
The cryptocurrency Shiba Inu (SHIB) recorded a notable price increase of over 10% within 24 hours. A significant factor for this increase is the recent performance of Shibarium, a Layer-2 solution, which has now successfully processed over 400 million transactions. This milestone could be an indicator of increasing usage and acceptance of Shibarium, which in turn has positive effects on the price of SHIB.
Shibarium’s New Milestone
Shibarium recently reached a new milestone by processing over 400 million transactions. Current data from Shibariumscan show that the Layer-2 solution has processed over 412 million transactions with an average block time of five seconds at the time of reporting. In addition, Shibarium currently has more than 1.3 million wallets.
Parallel to this, SHIB was able to record a price increase after a phase of the bear market. According to CoinMarketCap, the price of the meme coin increased by over 10% within the last 24 hours. SHIB is currently traded with a market value of over 17 billion USD, making it the eleventh largest cryptocurrency.
Will the Upward Trend Continue?
To assess whether SHIB’s upward trend could continue, the on-chain metrics were examined more closely. The analysis shows that SHIB’s social volume remains high, indicating continued popularity in the crypto community. In addition, the positive trend of the weighted sentiment shows that bullish sentiments around the meme coin have increased in recent days.
Furthermore, it was found that the network value-to-transactions (NVT) ratio of Shiba Inu recorded a decline. A decline in this metric usually indicates that an asset is undervalued, which increases the possibility of a price increase in the coming days. In addition, high buying pressure was detected on the meme coin, which is evidenced by the decrease in supply on exchanges and the increase in supply in the wallets of the top addresses.
Despite the increased buying pressure, market indicators showed a bearish tendency for the token. In particular, the Relative Strength Index (RSI) and the Money Flow Index (MFI) recorded a significant decline, suggesting that the likelihood of a price decline is high.
Our Assessment
The recent developments around Shibarium and the associated price increase of SHIB are undoubtedly remarkable. The achievement of the milestone of over 400 million transactions underlines the growing use and acceptance of Shibarium. Although the on-chain metrics and the buying pressure send positive signals, the market indicators point to a possible correction. It remains to be seen whether SHIB can continue its upward trend or whether a market correction is imminent. Investors should closely monitor the developments and adjust their strategies accordingly.
Sources: Shibariumscan, CoinMarketCap, Santiment, Glassnode, TradingView
| Symbol | SHIB |
| Coin type | Meme Coin |
| Transaction Speed | High |
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