Shiba Inu (SHIB) price rises 4% daily as exchange reserves continue to fall

TL;DR

Shiba Inu price rises 4% in 24 hours, possibly driven by key elements such as lower exchange reserves and increased chip burn. Conversely, Shibarium’s transaction activity has dropped.

SHIB flashes green again

As noted on CoinGecko, many leading cryptocurrencies have headed north today (October 9). Most have posted mild gains, with Shiba Inu (SHIB) among the top performers.

Its price is up 4% on a 24-hour scale, currently trading around $0.00001786. Meanwhile, the valuation has risen almost 40% in the last 30 days thanks to the mini bull run witnessed at the end of September.

SHIB Price, Source: CoinGecko

The resurgence aligns with the drop in SHIB’s foreign exchange reserves. According to CryptoQuant, the number has fallen in the past year, indicating a major shift away from centralized platforms towards self-custodial methods. This could be interpreted as a bullish signal as it reduces immediate selling pressure.

Another element that suggests SHIB’s rally could continue in the short term is the meme currency burning mechanism. The burn rate has increased over 400% in the last 24 hours, resulting in almost 3 million tokens being sent to a null address.

The USD equivalent of stocking may be negligible, but continued efforts in this field will make Shiba Inu scarcer and possibly more valuable (assuming demand remains at or increases).

Large trades, a momentum oscillator that measures the number of trades above $100,000, is also on the rise. It has increased by 5.5% daily (according to IntoTheBlock), showing the bullish sign.

Shibarium struggles to pick up the pace

Further progress on Shiba Inu’s Layer 2 blockchain solution, Shibarium, has also been touted as a factor that could boost the price of the meme coin.

Although the protocol has achieved numerous goals in recent months, it has recently underperformed. Daily transactions have been below 10,000 since early October, compared to millions at the start of 2024.

The main goal of Shibarium is to further the development of Shiba Inu by improving scalability, reducing transaction fees and improving speed. For more updates on the ecosystem, be sure to check out our Shibarium News.

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