Shiba Inu Bucks the Trend with Supply Decline: Bullish Signals Emerge
While Shiba Inu has undergone a volatile time in the past week, it is currently trading at $0.00001004. A distinctive trend is unfolding that opposes the broader market downturn. Santiment, a cryptocurrency intelligence tracker, has uncovered a significant development—the supply of SHIB on exchanges has contracted by 0.51% since Nov. 12, now resting at 7.85%. This decrease in SHIB supply on exchanges suggests a potential reduction in selling pressure. This creates a foundation for potential future gains.
In the realm of cryptocurrency, a decrease in supply on exchanges typically signifies a lessening of selling pressure on the asset. During this period, there has been a notable surge in SHIB exchange flows, resulting in a depletion of SHIB reserves across various exchange platforms. This occurrence lays the groundwork for potential gains for the meme coin.
Investor Accumulation
Reinforcing the optimistic outlook are on-chain metrics that showcase an accumulation of SHIB by both retail and large-wallet investors over the preceding month. According to Santiment data, SHIB holders within different cohorts, holding between 10,000 and 100 million SHIB tokens, have expanded their positions in the dog-themed cryptocurrency.
This accumulation is generally interpreted as a positive signal. Coupled with the diminishing supply of SHIB on exchanges, it mitigates selling pressure on the meme coin, thereby enhancing the probability of further price appreciation.
Also Read: Shiba Inu: Here’s How High SHIB’s Price Can Reach In 2024
Shibarium’s Impressive Metrics
Digging into the details, the team observes that Shibarium currently boasts an impressive average of 7.83 million transactions per day, just three months after its launch. This represents a significant improvement from the period shortly after its mainnet launch, when it averaged slightly above 15,000 daily transactions.
December has witnessed a substantial uptick in the daily transaction count, averaging 7.83 million transactions. As of the latest update, Shibarium now boasts an impressive 7.83 million transactions.
Major Burn and Augmented Burn Rate
Information from Shibburn, a platform dedicated to monitoring SHIB token burns, discloses a substantial burn of over 2.7 million SHIB in the past 24 hours. These tokens have been permanently withdrawn from circulation. Correspondingly, the SHIB burn rate has surged by over 34% during the same timeframe.
Despite a recent correction in the market, Shiba Inu presents a unique narrative with its diminishing supply on exchanges and positive on-chain metrics indicating increased investor accumulation. The notable increase in Shibarium transactions and a significant token burn further contribute to the optimistic sentiment surrounding SHIB. As the cryptocurrency landscape evolves, Shiba Inu’s current trends suggest potential future gains, offering a ray of hope for its investors.
Also Read: Shiba Inu: Shibarium Reached 90 Million Total Transactions
Credit: Source link
