In recent months, Shiba Inu (SHIB) has experienced a decline in price, but a number of factors suggest a potential recovery ahead.
Current Situation with Shiba Inu (SHIB)
At the end of March, Shiba Inu (SHIB) briefly increased in price, but there has been a clear decline in the last 30 days. Currently, it trades at around $0.00001192, reflecting a 5% drop for the timeframe.
Factors Contributing to Growth
One of the key factors is the explosive increase in SHIB's burn rate, which has surged by nearly 2000% in the last 24 hours, resulting in over 17.6 million tokens being sent to a null address. Interestingly, a single transaction from a mysterious entity contributed to over 90% of the destroyed tokens. The primary aim of this mechanism is to reduce the massive circulating supply of SHIB, thus potentially increasing its value. However, burn rates alone do not guarantee stable price increases; consistent or growing demand is also necessary. Another possible catalyst for price growth is the development of Shibarium, where daily processed transactions have recently skyrocketed above three million, indicating strong user engagement.
Observations on Exchange Flows
It is also worth noting the exchange flows of SHIB tokens. Recently, outflows have dominated inflows, suggesting that holders are moving their tokens off centralized platforms into self-custody. This trend can be seen as a bullish signal as it reduces immediate selling pressure.
Despite the current situation, various factors such as increased token burn rates and activity within the Shibarium ecosystem may create conditions for a potential rise of Shiba Inu (SHIB) in the future.
