According to CryptoPotato, Shiba Inu (SHIB), the second-largest meme coin by market capitalization, has seen a 9% price decline over the past week. Despite this downturn, several factors suggest a potential resurgence for the cryptocurrency.

One significant factor is the burn rate implemented by the Shiba Inu team in 2022. This mechanism aims to reduce the circulating supply by sending SHIB tokens to a null address with each transaction. Recently, the burn rate has surged, with around 60 million tokens destroyed in the past 24 hours, marking a 500% increase compared to July 22. To date, over 41% of the initial supply has been burned, leaving approximately 583 trillion SHIB tokens in circulation. This reduction in supply could drive up the value of the remaining tokens if demand remains steady or increases.

Another noteworthy element is the SHIB exchange netflow. Over the past 30 days, outflows have significantly surpassed inflows, indicating a shift from centralized platforms to self-custody methods. This trend is generally considered bullish for the price as it reduces immediate selling pressure. A similar pattern was observed in early March, leading to a substantial price increase for Shiba Inu.

Additionally, Shiba Inu's open interest, which represents the total number of outstanding derivative contracts, exceeded $30 million last week, reaching a one-month high. An increase in open interest typically signals heightened market participation and can be a precursor to increased volatility and significant price movements. While this metric does not guarantee positive outcomes, it often indicates a substantial move is imminent. If the broader market continues to rally, it could benefit SHIB bulls.

Lastly, the progress of Shibarium, a layer-2 scaling solution launched approximately a year ago, is also noteworthy. Shibarium has achieved several milestones, including processing over 400 million transactions and producing more than 5.5 million blocks. Its primary goal is to enhance the Shiba Inu ecosystem by reducing transaction costs, improving speed, and increasing scalability. Some industry participants believe that further advancements in Shibarium could positively impact SHIB's price.

These factors collectively suggest that while Shiba Inu has faced recent challenges, there are indicators that a resurgence could be on the horizon.