Shibarium, Shiba Inu’s layer-2 scaling solution, is seeing a significant uptick in transaction activity, with nearly 18,000 daily transactions, representing a 193% increase from the previous day. Although this growth is substantial, it is still considerably lower than the peak seen in mid-April when daily transactions reached the millions.
Launched in the summer of 2023, Shibarium was designed to improve Shiba Inu’s scalability, reduce transaction fees, and enhance processing speed. These enhancements aim to make the meme coin more efficient and appealing to users and investors. The recent milestones achieved by Shibarium are considered positive indicators for Shiba Inu’s market performance.
The increase in transaction activity highlights the growing utility and adoption of the Shibarium network. As more users engage with the platform, the likelihood of Shiba Inu stabilizing and experiencing growth in value increases.
In terms of price movements, Shiba Inu has shown positive trends recently. The asset’s value has increased by 9% daily and 18% over the past month, attracting attention from market analysts and investors. Prominent analysts, like Ali Martinez from Crypto X, are optimistic about SHIB’s potential price movements. Martinez predicts a 20% price rise if Shiba Inu breaks the upper boundary of a descending parallel channel at $0.00002444. Recently, SHIB has surpassed this level and is currently trading at $0.0000248.
Another analyst, Dami-Defi, suggests that breaking out of the falling wedge pattern on the 1D time frame could lead to a 50% price surge for SHIB. These analyses reflect the overall market sentiment, which is increasingly positive about Shiba Inu’s future price potential.
It is noteworthy that SHIB has experienced a significant 1,590% surge in large holder inflows, attributed to increased activity from whales, who hold substantial amounts of SHIB. According to IntoTheBlock, the influx of funds into addresses belonging to large holders has surged from 728.17 billion SHIB on May 15 to 3.97 trillion SHIB on May 16. This significant increase often indicates significant buying activity from whale addresses. Typically, these large holders make purchases on centralized exchanges before transferring their assets into cold storage.
Increases in large holder inflows are also seen as potential indicators of price bottoms. Whales tend to buy in bulk after significant corrections, suggesting that they view the current price levels as an opportunity to accumulate. This trend is particularly noteworthy as Shiba Inu’s price faces substantial resistance.
Currently, SHIB has seen a 0.70% increase in the last 24 hours, trading at $0.0000253. Over the past three days, the cryptocurrency has struggled to surpass the daily Simple Moving Average (SMA) 50 at $0.00002524.
The surge in large holder inflows raises questions about the potential impact on SHIB’s price. Historically, increased whale activity has resulted in significant price movements. If whales continue to accumulate SHIB, it could signal confidence in the asset’s future performance, potentially attracting more retail investors and contributing to upward price pressure.