Shiba Inu: Factors Contributing to Potential Price Rally

Despite Shiba Inu’s recent price underperformance, the number of daily active addresses has been on the rise. According to data from IntoTheBlock, SHIB daily active addresses have surged above 3,500, showing a 13% increase. This uptrend indicates a growing interest in the asset and suggests that investors are taking more notice of Shiba Inu. The growing demand could potentially lead to a price rally in the future, especially if the supply remains stable.

Burning Mechanism

One key factor that could positively impact the price of Shiba Inu is the coin’s burning mechanism. The team behind the meme coin has implemented a strategy to reduce the circulating supply of SHIB tokens. Data shows that over 410 trillion tokens, approximately 41% of the maximum total supply, have already been burned. In a recent report by CryptoPotato, the burn rate increased by over 8,500%, resulting in the removal of around 86 million tokens in a single day. The team plans to further automate the burning process to simplify and streamline the system.

Shibarium Progress

Another significant development that could contribute to a potential price increase for Shiba Inu is the progress of Shibarium, a layer-2 blockchain solution. Introduced in the summer of 2023, Shibarium aims to enhance Shiba Inu’s speed and reduce transaction fees, making it more competitive with other cryptocurrencies. Recently, Shibarium reached a milestone with total transactions surpassing 360 million, while wallet addresses are approaching the 1.5 million mark. These advancements in technology could help differentiate Shiba Inu from its competitors and attract more users to the platform.

Despite Shiba Inu’s recent price performance, there are several positive indicators that suggest a potential price rally in the future. The increasing number of daily active addresses, the burning mechanism to reduce supply, and the progress of Shibarium all point towards a bright outlook for SHIB. Investors should keep an eye on these factors as they could have a significant impact on Shiba Inu’s price movement in the coming days.