Shiba Inu, the second-largest meme coin by market value, has seen significant increases in several important metrics, indicating a possible change in market sentiment. According to IntoTheBlock, the 7-day volume of Shiba Inu transactions valued at $100,000 or more has increased by 430%, reaching $32.5 million. This surge has led IntoTheBlock to view Shiba Inu as very bullish, noting a 0.22% rise in net network growth. This uptick in large transactions and network activity signals a positive shift for the coin.
Another key metric showing improvement is Shiba Inu’s daily SHIB burn rate. According to Shibburn, the burn rate has increased dramatically by 7,334.38%, with over 2.37 million SHIB tokens moved to dead wallets. This increase reduces the overall supply of SHIB, potentially boosting its price. Data also shows that inflows have significantly outpaced outflows in Shiba Inu’s exchange net flow over the last 30 days, indicating a shift towards self-custody methods and away from centralized exchanges. This development suggests growing confidence among investors in the asset.
In recent months, Shiba Inu experienced a significant downturn, losing over 10% of its value at one point in July. During this period, several key metrics for the cryptocurrency plummeted, highlighting its poor performance amid market volatility. Shiba Inu's open interest in June fell by 40%, dropping from $135 million to $80 million. Daily transactions on the Shibarium network also fell by about 50%, contributing to a subsequent decrease in SHIB's price. Additionally, SHIB's burn rate saw a 98.79% decline, with less than one million SHIB tokens being burnt. Given these challenges, the recent improvements in key metrics offer renewed hope for a potential price recovery for Shiba Inu.
While Shiba Inu shows promising signs of improvement, it remains sensitive to market fluctuations that are common in meme coins. The positive trends in transaction volumes, burn rates, and exchange net flows are encouraging signs of a potential recovery. Investors and analysts will be closely monitoring whether these trends continue and lead to a sustained price increase. If Shiba Inu can maintain its momentum, it might recover from recent setbacks and strengthen its position in the cryptocurrency market.
