The Shiba Inu ecosystem has witnessed a significant surge in SHIB transactions, with a 350% increase in transactions valued at over $100,000, according to data from IntoTheBlock.
According to IntoTheBlock’s Large Transactions Volume chart, it can be observed that in the last 72 hours, the total daily volume of SHIB transactions reached 3.8 trillion tokens, highlighting the growing interest from investors in the second-largest meme cryptocurrency by market capitalization.
On-chain data demonstrates that this increased interest in SHIB has driven a staggering 1,964.3% increase in SHIB deposits to the wallets of mysterious large holders or SHIB whales.
Why are SHIB transactions increasing?
As reported by ZyCrypto, the massive uptick in transactions and whale activity could be attributed to investor interest in Shibarium. This recently launched Layer 2 solution utilizes tokens from the Shiba ecosystem, such as SHIB, LEASH, and BONE, to solve the high gas fees and slow transaction speeds associated with Ethereum.
Additionally, Shytoshi Kusama, the mysterious lead developer of Shiba Inu, recently published a 26-page document outlining the architectural plan for the decentralized digital realm of Shiba Inu. This plan appears quite intriguing, especially considering that the developer highlights several challenges facing the crypto industry that Shiba Inu aims to address, including stability and high transaction fees.
Therefore, despite the recent price drop experienced by SHIB over the past week, investor interest may be leaning toward the transformation that Shiba Inu is projecting in its attempt to distance itself from meme coins that lack utility beyond speculation.
Wen $0.001 SHIB price?
While it’s impossible to state with precision whether SHIB is on the verge of starting a bullish rally, the significant increase in massive purchases of tokens by large SHIB holders could indicate a price surge, as whales often buy substantial amounts after significant declines.
Furthermore, recent analyses from Santiment suggest that Shiba Inu, Ethereum, and SushiSwap may be on the verge of hitting bottom after showing signs of capitulation. “These are typically signs of a short-term rebound opportunity.”
#Ethereum, #ShibaInu, and #Sushiswap traders showed some mild signs of panic yesterday, and their networks showed some of the highest levels of trader loss taking (vs. profit) all year long. These are typically signs of a short-term rebound opportunity. https://t.co/lz6NsiH62o pic.twitter.com/HWzWvM5RHz
— Santiment (@santimentfeed) October 6, 2023
Therefore, the recent exponential increase in transaction volume and whale activity in Shiba Inu could be an encouraging sign that the token is poised to reverse its bearish trend. For now, we’ll need to closely monitor SHIB’s behaviour to confirm whether it is indeed the beginning of the long-awaited bullish comeback to the much coveted $0.001 price point.
