TL;DR
- The L2 blockchain solution reached a fresh milestone, but SHIB’s price is down 3% for the day.
- Weak token burns and rising exchange inflows indicate that the pullback may intensify in the short term.
Hitting Another Target
Shiba Inu (SHIB) has become one of the most talked-about crypto projects, evolving from its origins as a meme coin to a sophisticated ecosystem. One of the cornerstones of this development is Shibarium, a layer-2 scaling solution designed to reduce transaction fees, enhance speed, and improve scalability.
Since its official launch in August 2023, Shibarium has made significant strides. Notably, approximately a month ago, the number of transactions processed on the platform exceeded one billion, a figure that has now climbed to over 1.12 billion.
As of April 30, the protocol has marked another key achievement—surpassing 200 million wallet addresses that have interacted with Shibarium. This milestone indicates growing engagement with the platform and its potential utility within the broader crypto ecosystem.
The L2 blockchain solution’s progress has not gone unnoticed, as various industry experts have indicated that SHIB’s future performance may rely heavily on its advancements. Bitcoin proponent Jeremie Davinci shared his insights on the project, stating:
“I like Shiba Inu, as you know, and I think it will do relatively well in this cycle, but it may not go as high as you expect. I think Shiba Inu has a lot of utility now that they have Shibarium, and basically, it’s a chain that you can actually run all kinds of applications. However, nobody is using it, and there are no applications for using your tokens on Shibarium yet. If they get that solved, Shiba Inu will go to the moon.”
SHIB Price Outlook
Despite Shibarium’s accomplishments, Shiba Inu’s price has seen a decline, falling approximately 3% and currently trading at $0.00001323, according to CoinGecko. The recent performance raises concerns about the token’s short-term outlook.
Several indicators hint that potential pullbacks could deepen. For example, the token burn mechanism has removed only a minor quantity of SHIB over the past week. Its primary intention is to decrease the large circulating supply, which could enhance the token’s value through scarcity. However, for this strategy to be effective, demand must either increase or, at the very least, remain stable.
Moreover, Shiba Inu’s exchange netflow has also shown troubling signs. Recent data indicates that inflows have outstripped outflows in recent days, revealing a shift among investors toward centralized exchanges. This trend may raise immediate selling pressure, complicating the token’s recovery efforts.
Moving forward, the Shiba Inu community will be watching these developments closely. While Shibarium is on the rise, sustained engagement and utility will be vital for SHIB’s price performance in the coming weeks.
