Shiba Inu may see an increase in the short term

As reported by CryptoPotato, some important factors suggest that Shiba Inu (SHIB) may see an upside in the short term. The development of SHIB's second-layer blockchain solution and the recovery of the meme coin space may support this rally. In recent days, similar to many other cryptocurrencies, SHIB has performed poorly, with a 3% price drop in the past two weeks (according to data from Coingecko). However, some key indicators and factors hint that this correction may be nearing its end. According to data from CryptoQuant, SHIB exchange net inflows have only been positive once in the past eight days. The shift from centralized exchanges to self-custody methods is considered bullish as it reduces immediate selling pressure. In addition, SHIB's destruction plan may also play a role. Since the beginning of 2024, more than 9 billion tokens have been destroyed. This mechanism is designed to reduce SHIB's huge circulating supply, making it more scarce and thus potentially more valuable over time. Earlier this week, the Shibarium (Shiba Inu's second-layer blockchain solution) team launched a major update designed to reduce the burden of manual token destruction and automate the entire system. According to some experts, further developments in second-layer scaling solutions may also drive SHIB's upside. Shibarium, launched in August last year, aims to boost the Memecoin ecosystem by reducing transaction fees and increasing speed. Another key factor that could drive SHIB higher is a potential recovery in the Memecoin space. Such assets sometimes follow each other’s lead, and there are a lot of green assets at the moment. Memecoins built on Solana, in particular, have seen big gains in the past few weeks.