SHIB Updates: Panic or Opportunity?

Photo of author

By A D

Shiba Inu (SHIB), known for its memecoin status, has been on a rollercoaster ride in recent months. From a steep downtrend since mid-August, SHIB recently experienced a significant surge in transaction volume that has left the crypto community intrigued.

Surge in Transaction Volume

On October 9th, SHIB recorded an astonishing $4.48 trillion in 24-hour transaction volume, marking a substantial increase from $1.76 trillion on October 7th and nearly $4.7 trillion on October 8th. These figures are nothing short of remarkable and indicate a surge in on-chain activity. Interestingly, this surge in transaction volume comes at a time when SHIB’s price has only moved up by 1% over the past 24 hours, reaching approximately $0.00000689.

Token Burns by the SHIB Community

In the midst of these price fluctuations, the SHIB community has been actively burning tokens by moving them to dead-end wallets. Over the last 24 hours, the community successfully disposed of a significant amount of SHIB meme coins, with transaction amounts ranging from 14,292 to 9,891,756 SHIB. Just last week, they eliminated a total of 341,152,570 SHIB from the circulating supply. It’s a commendable effort to reduce the supply, yet SHIB’s price has not made significant attempts to rise.

In conclusion, Shiba Inu’s recent surge in transaction volume and the ongoing price tests underscore the complex nature of the crypto market. The memecoin’s ability to navigate these challenges and maintain support levels will be vital in determining its future trajectory. The crypto community will be closely watching to see whether SHIB can break free from its recent downtrend and achieve new highs.

Recent Breakthrough

Shiba Inu (SHIB) appears to be making a noteworthy rebound after testing a critical support level at $0.0000061, hinting at the potential for an upcoming bull run. Over the past 24 hours, SHIB has shown a 3.63% increase, and over the past week, it has gained 5.79%.

shib a inu price chart
Image Source: Coindesk

Nonetheless, taking a broader perspective, SHIB’s value has declined by 49% since reaching its yearly high of $0.00001471 on February 5. Despite this, there are indications that positive momentum may be building. One significant factor contributing to this optimism is Shiba Inu’s Layer-2 scaling solution, Shibarium, which has achieved a remarkable milestone.

The Bitcoin Factor

One piece of good news in the cryptocurrency space is the growing confidence that a Bitcoin ETF might be approved in the near future. Coinbase’s legal counsel has expressed optimism about this prospect. They point to indicators like the SEC’s lack of appeal regarding the Grayscale ETF’s court decision, signaling that regulatory barriers are gradually being removed. The success of a Bitcoin ETF is critical not only for Bitcoin but also for the entire crypto market. It represents a significant milestone, potentially drawing more investors into the space.

bitcoin price chart
Image Source: Coindesk

Bitcoin, in particular, is currently testing the $35,000 level, and this positive sentiment is expected to ripple across the cryptocurrency landscape. However, despite Bitcoin’s rise, SHIB is only retesting the 700 points per coin level, still to break through it to attempt higher levels of technical resistance. This discrepancy offers opportunities for those looking to invest in SHIB.

The crypto markets are closely following Bitcoin (BTC), and if BTC continues to rally, we might see a similar trend for SHIB. Some attribute the current market bullishness to “Uptober,” a play on the word October, as this month has historically been bullish for crypto. It’s also possible that investors are seeking refuge in cryptocurrencies due to rising tensions in the traditional stock markets.

SHIB and Shytoshi

One significant factor contributing to this optimism is Shiba Inu’s Layer-2 scaling solution, Shibarium, which has achieved a remarkable milestone.
Shibarium, designed to tackle high gas fees and slow transaction times that troubled Shiba Inu, has garnered a positive reception within the Shiba Inu community since its launch, despite encountering some initial hiccups. Data from Shibariumscan reveals that Shibarium has now surpassed 1.3 million blocks mined and a total of 3.574 million transactions. What’s striking is the efficiency and speed of Shibarium, with an average block processing time of just 5.0 seconds. For context, Bitcoin has a block creation time of 10 minutes.

Read: Shibarium brings its new features to light

Additionally, Shiba Inu team member Lucie introduced a new feature on Shibarium Scan, allowing users to connect via email to access updates, progress, and statistics about Shibarium. This feature is optional and does not require users to connect their wallets, ensuring the security of their crypto assets.

The Shibarium ecosystem continues to make progress, with new integrations and innovations. Australian crypto exchange GroveX recently integrated Shibarium, further expanding its reach. As of the latest data, Shibarium has reached 1,306,051 blocks on the mainnet, with an average block time of 5.0 seconds. Daily transactions on Shibarium have also been on the rise, with fresh innovations on the horizon, including the development of a play-to-earn (P2E) game, offering players the opportunity to earn Treat (not yet launched) by playing Shiba Eternity.

Historically, positive developments and milestones achieved by Shibarium have had a substantial impact on SHIB’s price. Rumors about Shibarium’s August launch drove SHIB to $0.00001137, although it has since retraced most of those gains. Currently, SHIB is trading at $0.000007484 and appears poised for a potential price breakout that could retest the August highs, representing a 43% increase from the current price.

Lastly, massive SHIB transfers have been observed, with nearly 31.5 trillion SHIB (worth $224 million) being moved within the past week. These substantial transfers may represent OTC transactions or whales reshuffling their holdings. A significant portion of SHIB supply is concentrated among a small number of large-tier whales, further emphasizing the impact of large holders on the market.

Shytoshi Kusama, the lead developer of SHIB, has re-emerged from a period of silence and has been engaging with the SHIB community, hinting at important projects and collaborations for Shibarium’s next phase. The SHIB community remains active and continues to speculate on Kusama’s whereabouts, adding an element of intrigue to the project’s developments.

Leave a Comment