3 Reasons Behind Shiba Inu (SHIB)’s 30% Monthly Rally: Details

TL;DR

Shiba Inu (SHIB) is up 5% over the past week and 30% monthly, possibly driven by the overall market revival and a sharp increase in its symbol burn rate. On the other hand, negative sentiment on Telegram and stagnant activity on Shibarium suggest a possible correction ahead. SHIB returns to the north

The second largest meme coin in terms of market capitalization witnessed a substantial resurgence last week. Its price increased by 5% during this period, currently standing at around $0.0000183 (according to CoinGecko data).

SHIB Price, Source: CoinGecko

The latest rally can be attributed to several factors, the global market revival being one example. As reported by CryptoPotato today (October 15), Bitcoin (BTC) soared to a three-week high of approximately $66,500. In the following hours, it retreated slightly to the current $65,700.

Other leading cryptocurrencies posting significant increases include Ethereum (ETH), Solana (SOL), Avalanche (AVAX) and more. The meme sector, meanwhile, has fared even better, with TURBO, NEIRO and MEW rising by double digits on a 24-hour scale.

The second element that possibly increases the value of SHIB is the progress of the recording program. The data shows that the burn rate exploded by 1,700% in the last seven days and almost 8,000% in the last 24 hours alone, resulting in hundreds of millions of tokens being sent to a null address.

The ultimate goal of the mechanism is to reduce the circulating supply of meme currency, making it scarcer and potentially more valuable over time (it should demand north or stay constant).

Last but not least, we will focus on SHIB’s net exchange flows, which have suffered a massive drop in the last week (outflows outweigh inflows). This indicates a shift from centralized platforms to self-custody methods and could be interpreted as a bullish sign as it reduces immediate selling pressure.

SHIB Exchange Netflow, Source: CryptoQuant Bears, check it out

While the elements mentioned above suggest a new rally for SHIB, some hint that a correction could be around the corner.

According to IntoTheBlock, sentiment on Telegram is predominantly negative. Specifically, 35% of SHIB-related messages on the platform are pessimistic, while less than 10% are in the opposite corner. Shiba Inu has one of the largest and most dedicated communities in the crypto space. As a result, the mood of messaging platforms can influence trading behavior, influencing buying or selling decisions based on prevailing sentiment.

Another factor worth mentioning is Shibarium’s stagnant progress. Daily transactions on the Layer 2 scaling solution have been below 10,000 in recent weeks, pointing to a possible decline in user interest and activity. For more updates on the ecosystem, be sure to check out our Shibarium News page.

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