The expansion of the Shiba Inu ecosystem and burning efforts may trigger an explosion with increased activity.
The rapid growth of Shibarium and the soaring burn rate of 65,530% highlight the growing value potential of SHIB.
A balanced MVRV and bullish long/short ratio indicate a cautiously optimistic attitude towards future price increases.
The Shiba Inu [SHIB] Shibarium ecosystem is rapidly gaining attention, with an astonishing 430 million transactions and a user base of 2 million wallets.
Recently, the burn rate of the SHIB token skyrocketed to an astonishing 65,530%, igniting optimism about its potential. This surge in deflation aims to limit the supply of tokens, which could increase their value over time. This news has filled SHIB token holders and investors with anticipation, as they believe this could be a great opportunity for profit.
As of now, the trading price of SHIB is $0.00001702, slightly up by 0.96% on the day. This figure raises the question: Will the expansion of Shibarium drive SHIB to breakthrough?
Are the number of addresses and transactions growth indicators?
According to CryptoQuant's data, the daily active addresses of Shiba Inu are steadily increasing, with a recent growth of 0.89% in the last 24 hours. This continued engagement in Shibarium indicates that user interest remains strong.
Additionally, the number of transactions increased by 1.63%, indicating enhanced activity across the network.
However, despite the steady growth of the Shibarium ecosystem being encouraging, it has yet to reach explosive levels. To attract a wider range of investors, Shibarium may need to make greater efforts in activities and practicality to drive significant price increases for SHIB.
The Shibarium ecosystem is striving for broader adoption and recognition. To achieve this goal, they may need more activities and marketing strategies to attract new investors. Additionally, increasing the practicality of the SHIB token is also crucial. By adding more use cases and partnerships, Shibarium can ensure that the SHIB token has more practical uses in the market, thereby attracting more investors and users.
Higher participation may reflect broader adoption and could lay the groundwork for future price increases.
The MVRV ratio tells us about the value of SHIB.
The market value to realized value (MVRV) ratio of Shiba Inu currently stands at 1.32%, indicating a slight enhancement in recent investors' profitability.
This moderate level indicates that SHIB has not reached an overvalued state, which may support its continued accumulation without triggering a wave of profit-taking.
According to the latest data, the MVRV ratio has seen a significant increase, which may indicate potential overvaluation in the market and could also lead to increased selling pressure. However, the current balanced MVRV ratio suggests the market remains in a cautiously optimistic state, meaning new investors can enter the market without immediately facing sell-off risks.
Does the long/short ratio reflect bullish sentiment?
Next, let's take a look at the long/short ratio of SHIB. By checking, we find that currently, 57.52% of positions are long while 42.48% are short. This indicates that the market is generally more optimistic about SHIB's performance, with most traders expecting the price of SHIB to rise.
Nevertheless, the large proportion of short positions indicates some cautious sentiment, as a change in sentiment could trigger sell-offs.
This long/short ratio reflects an overall optimistic yet cautious outlook, as traders bet on the potential of SHIB while remaining alert to potential volatility.
The chances of a SHIB rebound.
The growth of Shibarium and the surge in SHIB are laying the groundwork for potential price appreciation. While daily active addresses and transactions show stable participation, an acceleration may be needed to trigger a significant rise.
The balanced MVRV ratio and slightly bullish long/short sentiment provide encouraging signals. Therefore, the Shiba Inu ecosystem seems to be in a favorable position for growth, but the next wave of activity could be crucial for a final breakthrough.
Overall, the Shibarium ecosystem has great potential, but to achieve long-term success, they may need to make greater improvements in activities and practicality. By adopting more marketing strategies, increasing use cases, and collaborating with other projects, Shibarium can lay a stronger foundation for the price increase of the SHIB token.
