Shiba Inu (SHIB) cryptocurrency has significantly risen after a series of setbacks over the past week. This article explores three factors that have potentially contributed to this growth.
Potential Catalysts
After underperforming over the past few weeks, Shiba Inu (SHIB) has shown a solid price rally, gaining 5% in the last 24 hours and trading at around $0.00001232, based on CoinGecko's data. A possible element that contributed to such a rise is Shibarium's resurgence, Shiba Inu's layer-2 blockchain solution, which processed almost 250,000 transactions in the last 24 hours. This is a significant rise compared to the number observed earlier this month. Shibarium is specifically designed to promote the meme coin's ecosystem development. Earlier, popular analyst Davinci Jeremie suggested that SHIB could soar if the protocol progresses.
Exchange Netflow Dynamics
Another factor is SHIB's exchange netflow, which according to CryptoQuant, has been on a downtrend in the past week, indicating a possible shift from centralized platforms toward self-custody methods. This development reduces immediate selling pressure. CryptoQuant's data also shows that SHIB's reserves stored at exchanges have dropped to an almost four-year low of approximately 94.2 trillion tokens.
Market Rebound
Lastly, Shiba Inu’s revival could be attributed to the recovery of the cryptocurrency sector. Bitcoin (BTC), Ethereum (ETH), and most leading digital assets have charted solid gains in the past 24 hours, erasing some of the losses incurred in the last few weeks. Meme coins, including SHIB, often follow the overall trend. It is worth mentioning that the next few days may offer additional volatility due to the release of the US CPI data and the potential negotiation talks about peace in Ukraine. This could solidify the current bullish move, or the bears might retake control if the news is not so positive.
Shiba Inu (SHIB)'s price recovery seems to be a result of multiple factors such as Shibarium's activity increase, exchange reserves decrease, and the overall crypto market revival. Upcoming external economic and political events may further influence this trend in the coming days.
