TL;DR
The popular memecoin – Shiba Inu (SHIB) – is one of the many crypto assets that have been on the rise lately. Its price has climbed by approximately 20% (per CoinGecko’s data) in the past seven days, with multiple factors that might be standing behind that rally.
One element could be the green wave in the entire cryptocurrency sector. Recall that Bitcoin (BTC) reached a 19-month peak of $44,000, whereas the second-largest by market capitalization – Ether (ETH) – briefly surpassed the $2,300 mark.
Another reason might be the further advancement of the layer-2 blockchain solution Shibarium. The network, which officially saw the light of day in August, has blasted through numerous essential milestones in the past few months.
Most recently, total transactions on Shibarium exceeded 50 million. This came after six consecutive days when daily transactions were into the millions.
The L2 scaling solution aims to elevate Shiba Inu above its rivals in the memecoin realm by improving speed and lowering fees. Those curious to learn more about the feature’s specifics and purposes could take a look at our dedicated video below:
Shiba Inu’s price is up almost 50% in the past six months, with some on-chain metrics indicating a further rally. According to CryptoQuant’s data, SHIB exchange netflows have gone into negative territory during most days in the past week, meaning outflows have outpaced inflows. This move could be observed as a bullish factor as it removes immediate selling pressure.
The successful execution of Shiba Inu’s burning mechanism might also trigger a SHIB price increase. The burn rate has soared by over 800% in the past 24 hours and an astonishing 1,500,000% on December 5.
The program aims to reduce the circulating supply of Shiba Inu and potentially make the asset more scarce and valuable in time. Over 41% of the token’s overall supply has already been sent to an address nobody could access.
