Important Shiba Inu Indicators Heading North: SHIB Price Recovery Coming In?

TL;DR

Key metrics such as increased Shibarium transactions and increased SHIB burn rate hint at a potential price rally despite recent declines. Shiba Inu’s decline reflects a broader meme coin and crypto market correction. Time for a rally?

The popular meme coin, Shiba Inu, has seen better days as its price has retreated slightly in the past 24 hours, while its market cap briefly dipped below $8 billion. SHIB is currently trading around $0.00001363, down 14% on a two-week scale.

Despite the negative trend, some key metrics suggest a price rally could be on the horizon. An example is the resurgence of the Layer 2 blockchain solution: Shibarium. Data shows that the protocol processed 6,360 daily transactions on August 14, which represents a 60% increase from the figure witnessed the previous day.

The total number of Shibarium transactions exceeded 418 million, while wallet addresses are approaching 2 million. This is considered a serious achievement for the network, which saw the light of day less than a year ago.

Shibarium’s main goal is to foster the development of the Shiba Inu ecosystem by improving scalability, reducing transaction costs and improving speed. According to some industry participants, its further development could positively affect SHIB’s price.

For more updates on the ecosystem, be sure to check out our Shibarium News.

Another factor worth noting is the Shiba Inu’s combustion mechanism. The burn rate has increased by almost 850% in the last seven days, resulting in the destruction of more than 148 million tokens. Continued efforts in this field will further reduce the huge circulating supply of SHIB, making it scarcer and potentially more valuable (if demand increases or stays the same).

The team behind the meme coin has already sent over 41% of the total supply (around 410 trillion) to a null address.

General decrease in Meme coins

Self-proclaimed killer Dogecoin isn’t the only meme coin in the red today (August 15), with the entire niche bleeding heavily.

Some of the best performers in the 10 club include dogwifhat (WIF) and Mog Coin (MOG), down 7% and 16% respectively.

Dogecoin (DOGE) and Pepe (PEPE) are among the few charts to post minor declines and are in the green on a weekly basis. The former is up 3% over that period, currently trading around $0.10, while the frog-themed token is up roughly 2%.

The underperforming meme coin niche coincides with a broader decline in the crypto market. Bitcoin (BTC) fell around $58,000, while Ethereum (ETH) missed the $2,700 resistance level.

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