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- Cryptocurrency enthusiasts are observing Shiba Inu (SHIB) as its network activity surges, partly due to the Shibarium Layer 2 scaling network, raising questions about a potential price recovery.
- Despite recent selling pressure, whale activity and developments around Shibarium highlight a positive sentiment and growing demand for the SHIB token.
Cryptocurrency investors are closely watching the movements of the world’s second-largest memecoin Shiba Inu (SHIB) which is currently trading at a price of $0.000007277 and a market cap of $4.2 billion. Throughout this month of October, Shiba Inu has been under some selling pressure.
Shiba Inu’s price reached its H2 2023 low at $0.00000706 on September 11. Subsequently, Shiba Inu’s network activity has experienced a notable surge, driven in part by stable throughput on the relaunched Shibarium Layer 2 (L2) scaling network. The question now arises: can this increased network activity support a sustained recovery mission for Shiba Inu’s price?
Despite this selling pressure, supporters of SHIB have displayed remarkable resilience, evidenced by a surge in whale activity that has ignited optimism among SHIB enthusiasts regarding the token’s prospects.
Recent data from IntoTheBlock highlights a significant uptick in whale transactions, particularly on September 21, when the total value of whale transactions surpassed $47 million. This heightened whale activity was also corroborated by Whale Alert, a prominent cryptocurrency transaction tracking service, which reported a substantial SHIB transfer originating from the Amsterdam-based exchange Bitvavo.
Traditionally, when cryptocurrency whales move their holdings away from exchanges, it signals a reduction in selling pressure. It further fosters positive sentiment regarding the future price of SHIB. Furthermore, this behavior frequently signifies their intention to “HODL” their assets for the long term, opting for more secure storage options. Significantly, on-chain data also indicates that large-scale whales continue to amass SHIB, contributing to decreased volatility that favors short positions.
The Shibarium Developments
The Shiba Inu team remains largely focused on the development around Shibarium, development aimed at enhancing the token’s utility and use cases. During the weekend, discussions on the X platform were centered around Shibarium, driven by LUCIE, the Chief Marketing Strategist of the Shiba ecosystem. LUCIE presented a video outlining the roadmap for Shibarium, reiterating the significance of staying committed, stating,
The journey ahead holds great promise and excellence, and we are making steady progress.
On September 23, Shibarium achieved a significant milestone with three million confirmed transactions. Remarkably, on-chain data reveals that the original Shiba Inu network also experienced substantial activity.
As illustrated in the Cryptoquant chart below, the Shiba Inu network witnessed a peak of 6,439 transactions over two weeks on September 23. This marks a 36% rise from the 4,749 transactions recorded on September 11, a date when SHIB’s price had reached its lowest point since June 14.
The Transaction Count metric gauges the ongoing economic activity within a blockchain network, monitoring the daily count of verified transactions. A sustained increase in network activity generally indicates growing demand for the native token.
The Shibarium Layer 2 (L2) network is expected to usher in a new era of expansion by enhancing transaction speeds and fostering greater adoption of the SHIB token.
