Shiba Inu (SHIB) Price Soars 4% Daily as Exchange Reserves Keep Declining
TL;DR
- Shiba Inu’s price is up 4% in 24 hours, possibly driven by key elements such as lower exchange reserves and increased token burns.
- Conversely, Shibarium’s transaction activity has dropped.
SHIB Flashes Green Again
As observed on CoinGecko, many leading cryptocurrencies have headed north today (October 9). Most have registered mild gains, while Shiba Inu (SHIB) is among the top performers.
Its price is up 4% on a 24-hour scale, currently trading at around $0.00001786. Meanwhile, the valuation has increased by nearly 40% in the past 30 days thanks to the mini bull run witnessed at the end of September.
The resurgence aligns with the plunging SHIB exchange reserves. According to CryptoQuant, the figure has been on a downfall in the last year, signaling a major shift from centralized platforms toward self-custody methods. This could be interpreted as a bullish signal since it reduces the immediate selling pressure.
Another element suggesting that SHIB’s rally could continue in the short term is the meme coin’s burning mechanism. The burn rate is up over 400% in the last 24 hours, resulting in almost 3 million tokens being sent to a null address.
The USD equivalent of the stash may be insignificant, but continuous efforts in that field will make Shiba Inu scarcer and possibly more valuable (assuming demand keeps its levels or increases).
Large Transactions, a momentum oscillator gauging the number of transactions greater than $100,000, is also on the rise. It has jumped by 5.5% daily (according to IntoTheBlock), flashing the bullish sign.
Shibarium Struggles to Catch Pace
The further progress of Shiba Inu’s layer-2 blockchain solution – Shibarium – has also been touted as a factor that could boost the price of the meme coin.
While the protocol has hit numerous targets in the past several months, it has been underperforming lately. Daily transactions have been hovering below 10,000 since the beginning of October, compared to the millions at the start of 2024.
Shibarium’s main purpose is to foster the development of Shiba Inu by enhancing scalability, lowering transaction fees, and improving speed. For more updates on the ecosystem, make sure to check out our Shibarium news.
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