The whole crypto market has been up but why has SHIB been leading the way in price action? Despite critics believing the meme coin is due for a sharp price correction amidst these epic gains, Shiba Inu is showing no signs of getting Old Yeller’ed.  Covered: Shiba Inu Price Rally The Shibarium Layer-2 Is Coming […] The post Two Reasons Why Shiba Inu Is Surging appeared first on CryptosRus.

Two Reasons Why Shiba Inu Is Surging

The whole crypto market has been up but why has SHIB been leading the way in price action? Despite critics believing the meme coin is due for a sharp price correction amidst these epic gains, Shiba Inu is showing no signs of getting Old Yeller’ed. 

Covered:

  • Shiba Inu Price Rally
  • The Shibarium Layer-2 Is Coming
  • Whale Manipulation?

Shiba’s Price Rally

The past two days have been absolutely incredible for Shiba Inu ($SHIB) in terms of price action. The Dogecoin rival has outpaced not only Dogecoin ($DOGE) but has also outperformed the other top 25 coins since Bitcoin began to make its run. SHIB is up over 60 % in the past 48 hours, and the twenty-four hour trading volume is up over 110% at just under $5 billion.

7 – Day $SHIB Chart

As you can see from the sharp increase in both volume and price action, this bull run has been great for Shiba.

There could be multiple reasons for this. For one, $SHIB is really proving itself as not only one of the top meme coins with a loyal community, but as a project with actual utility, a promising team and partnerships, and even an expected metaverse. On the other hand, it looks like whales are really buying in. Let’s take a look at the possible reasons why SHIB is leading the way in price action during this run.

Shiba Inu Price: The Shibarium Layer-2 Is Coming

In a recently announced Medium blog post, Unification Foundation, the developer of Shibarium, announced that the public testnet for the project will be released very soon:

“While the scale of the project doesn’t allow a definitive timeline to be released as of yet, the second version of Shibarium’s private testnet is live and under optimisation across both teams with plans of a public testnet release to come very soon.”

There have been two private testnets released already, and according to the Discord community, the project has been a success so far.

Shibarium is being developed as a scaling solution for Shiba Inu with the primary goal to lower transaction fees for users in the ecosystem. Once launched, SHIB tokens will be migrated to the Shibarium. Shiba Inu founder Ryoshi said that the Shibarium will allow for transaction fees to be minimal or even zero. Additionally, project lead Shytoshi Kusama said on the Shiba Discord that “Shibarium will offer low fees for every service, game or whatever that builds on it.”

Shiba Inu relies on the Ethereum network, and given that the high gas fees do not have a bright future, the developers are looking to solve this internally. Shiba users suffered from some congestion and heavy gas fees during the Shiboshi NFTs launch, and in the future, the Shibarium looks to solve this.

Shiba Inu Price: Whale Manipulation?

The current $SHIB price is substantially higher than most other cryptos in the top 25 coins by market capitalization. And although the promising transaction fees of Shibarium and the recently announced Shiberse make the meme coin more attractable for investors looking at the utility of tokens, there may be another factor playing a role: whales.

Shiba Inu has now become the most traded token in the top one thousand Ethereum wallets (aka whale wallets). It seems a little odd that these whale wallets would load up on $SHIB just because of a public testnet announcement “coming soon”, so what else is going on?

Well, the whale wallets might be “pricing in” an upcoming event. The whales are expecting a pretty dramatic decrease in the circulating supply, due to Shiba Inu coin burn parties that are being organized by Bigger Entertainment on Valentine’s Day. The crypto entertainment company plans to burn about a billion tokens during the event, and the result of a shrinking circular supply could result in rapid price increases, presumably when the whales will dump.

To conclude, there’s no denying that Shiba is the superior meme coin at this point. They have built a loyal community and are currently striving to become more than a meme token by developing new utilities (i.e., Shibarium and Shiberse). However, the whales may just be pricing in an expected token burning event to cash out when the price increases.

Let us know what you think have caused the substantial volume increase and price action boom in the comments below.

 

 

 

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