Key Shibarium Indicator Soars by 70% as the Shiba Inu (SHIB) Price Flashes Green: Details
TL;DR
- Shibarium saw a 70% spike in daily transactions, signaling renewed activity.
- SHIBs price surged nearly 10%, but caution is advised due to possible overbought conditions.
Finally a Resurgence
Shiba Inus layer-2 scaling solution has seen low activity in the past several weeks, stalling its progress observed at the start of the year. However, some metrics have taken off in the last 24 hours.
Data shows that the network processed 7,715 new transactions on September 18, a 70% increase compared to the 4,537 on September 17.
Other Shibarium indicators that have headed north on a daily scale include the number of new verified contracts and active accounts.
The L2 blockchain solution officially went live last August. It is specifically designed to foster the development of the Shiba Inu ecosystem by lowering transaction fees, increasing speed, and enhancing scalability.
Not long ago, the team adopted a burning mechanism called Burn Portal. Its ultimate goal is to reduce the circulating supply of SHIB tokens, thus making them scarcer and potentially more valuable in time.
The program is directly tied to Shibariums blockchain operations. Each time a transaction occurs on the network, a fraction of the costs paid in Bone ShibaSwap (BONE) is used to purchase SHIB tokens from the open market. That amount is then transferred to a null address.
In contrast, the original mechanism employed by Shiba Inu depends largely on community-driven initiatives and voluntary token burns by holders instead of an automated or protocol-driven process.
For more updates on the ecosystem, make sure to check out our Shibarium news.
SHIB Price Outlook
Some industry participants believe the further advancement of Shibarium could be among the factors triggering a bull run for Shiba Inu. The price of the meme coin has soared by almost 10% in the past 24 hours, currently trading at around $0.00001427 (per CoinGeckos data).
The uptick coincides with an overall resurgence of the cryptocurrency market where Bitcoin (BTC) exceeded $63,000 for the first time since late-August. The bullish environment was likely fueled by the US Federal Reserve which cut the interest rates by 0.5%.
Despite SHIBs impressive comeback, traders should enter the ecosystem cautiously due to the volatile nature of the asset and its rising Relative Strength Index (RSI). The technical analysis tool measures the change and speed of price movements and helps traders assess overbought or oversold conditions.
It varies from 0 to 100, with readings above 70 signaling overbought territory and the potential for a price pullback. The ratio reached that mark earlier today (September 19).
The post Key Shibarium Indicator Soars by 70% as the Shiba Inu (SHIB) Price Flashes Green: Details appeared first on CryptoPotato.
Text source: CryptoPotato
