Massive Spike in Important Shiba Inu (SHIB) Metric: What Does it Mean?

TL;DR

  • Shiba Inu’s certain on-chain transactions surged, signaling an increased investor interest.
  • Anticipated updates to the layer-2 scaling solution – Shibarium – aim to enhance transaction efficiency and user experience, potentially attracting more users and investment.

The Impressive Spike

After several days of trading in the red, Shiba Inu’s price has finally flashed green, jumping by 4% on a 24-hour scale (per CoinGecko’s data). SHIB’s resurgence coincides with the rise of an important metric related to the meme coin’s ecosystem.

SHIB Price
SHIB Price, Source: CoinGecko

As observed on IntoTheBlock, aggregated daily volume where each on-chain transaction exceeds $100,000 neared the $100 million mark. This represents a 268% increase compared to the data witnessed on April 29.

Such activity can positively influence the market sentiment, with some investors hopping on the bandwagon after the whales’ example. 

In addition, substantial transactions can affect the liquidity of SHIB. Large buy orders may reduce the available supply of tokens and lift the price if demand rises or remains steady. On the other hand, a massive sell-off can have the opposite effect. 

Additional Bullish Factor

The developments surrounding Shiba Inu’s layer-2 scaling solution – Shibarium – may also fuel a SHIB rally in the near future. Recall that the network underwent a major upgrade last week, with the team introducing a new user interface (UI) upgrade that focuses on enhanced compatibility with popular self-custody wallets like MetaMask, Coinbase Wallet, and Trust Wallet.

A few days ago, the developers announced that Shibarium will be the subject of another update on May 2 through a “hard fork.” The approaching advancement should improve user experience, enable faster block processing times, and empower the Shiba Inu community.

“We are also smoothing out transaction fee variations during high traffic times, making costs more predictable and fair for everyone. This ensures our platform remains affordable and accessible,” the team added.

Those willing to learn more about Shibarium and its main purposes can take a look at our dedicated video below:

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