Shibarium sees threefold wallet growth, bullish catalysts set stage for Shiba Inu price recovery
- Shibarium surpasses 100,000 wallets on its Layer 2 chain, noted threefold growth within 24 hours of its August 28 relaunch.
- Shiba Inu sees whale transfers worth $1 million and higher this week.
- SHIB token balance on exchanges declines, acting as a bullish catalyst.
Shibarium, the Layer 2 scaling solution of the Shiba Inu ecosystem, has hit a key milestone. Shibarium’s first launch was botched earlier this month, but the relaunch on August 28 resulted in threefold growth in the number of wallets on the Layer 2 chain.
On the day of the relaunch, Shiba Inu’s Layer 2 chain added 35,000 new wallets to its network as users lined up to use Shibarium. The successful relaunch is likely to act as a bullish catalyst and trigger a recovery in SHIB price, supported by bullish on-chain metrics.
Shiba Inu price recovery likely with bullish on-chain metrics, Shibarium relaunch
The Shiba-Inu-themed meme coin is gearing up for a recovery in its price, supported by two bullish catalysts. First comes the on-chain metrics, with whale transfers worth $1 million or higher, and the second is the declining supply of SHIB on exchanges.
These two metrics paint a bullish picture for SHIB price recovery in the short term. Based on the following chart from crypto intelligence tracker Santiment, several Shiba Inu transfers worth $1 million or higher were initiated between August 28 and early on Thursday. This week noted a rise in whale activity.
At the same time, there was a decline in SHIB supply held on exchanges. Between August 17 (82.74 trillion SHIB), the first launch of Shibarium, and August 31 (80.66 trillion SHIB), three days post relaunch, there was a significant drop in SHIB token supply on exchanges.
The supply on exchanges represents the selling pressure on the asset. Therefore, a decline in the metric is bullish for SHIB recovery in the short term.
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SHIB supply on exchanges, whale transactions >$1 million vs price
Shibarium activity multiplies three-fold in 24 hours of relaunch
Shibarium hit a key milestone, surpassing 100,000 wallets on its Layer 2 chain, and 35,000 were added in less than 24 hours from relaunch. The SHIB community is keen on adopting the Layer 2 scaling solution, and this is likely to act as a catalyst for SHIB price recovery in addition to bullish on-chain metrics.
At the time of writing, SHIB price is $0.00000816 on Binance, yielding 0.12% gains on the day.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
