SHIB has not performed well, but here are four reasons that are expected to change this situation

Some important factors and indicators that indicate that SHIB is expected to see a new round of recovery.

1. Burning rate:

Shib's continuous destruction is designed to reduce the large circulating supply of meme. The process involves sending SHIB to an empty address at every transaction. This promotes scarcity and can theoretically drive up the value of the remaining tokens (assuming demand remains the same or increases).

The destruction rate has exploded in the past few days. Data shows that about 60 million tokens have been destroyed in the past 24 H, an increase of 500% compared to July 22.

2. Shift from centralized platforms to self-custody methods:

Another factor worth mentioning is the net flow of SHIB exchanges. In the past 30 days, outflows have greatly exceeded inflows, indicating a shift from centralized platforms to self-custody methods. This is generally considered to be good for prices because it reduces immediate selling pressure. Recall that a similar trend was seen in early March, when SHIB’s valuation experienced a true bull run, soaring by triple digits in just a few weeks.

3. Open Interest:

Last week, SHIB’s open interest (the total number of derivative contracts such as futures or options that have not yet been settled) exceeded $30 million, a one-month high. An increase in open interest usually means increased market participation, meaning that more traders are joining the fray. This is often a precursor to increased volatility and wild price swings in either direction.

While this indicator doesn’t necessarily mean good news, it is often a precursor to large swings. If the broader market continues to rise, it could become a boon for SHIB bulls.

4: Shibarium’s Progress

Last, but not least, it’s important to understand the progress of Shibarium, a second-layer scaling solution. It was launched about a year ago and has passed several milestones since then. For example, the protocol has processed more than 400 million transactions and generated more than 5.5 million blocks. The main purpose of Shibarium is to promote the development of the SHIB ecosystem by reducing transaction costs, increasing speed and enhancing scalability. The market believes that its further development may have a positive impact on SHIB prices.