The largest rise in activity in recent months occurred on March 31, when the Shiba Inu network experienced a major spike in transactions.
Nobody knows for sure, what is causing these activity spikes. However, there are a number of things that might have contributed to the abrupt rise in transaction volume.
Several analysts have proposed possible reasons for these spikes. Some of these "reasons" may have been the recent increase in burn rates, which resulted in the withdrawal of 1.1 billion SHIB tokens from circulation.
Another of these may have been the renewed interest in Shiba Inu as a cryptocurrency, as the broader crypto market recovers. SHIB, like the others, may be attracting a fresh inflow of capital and attention.
Let's take a deep dive into what the Shiba Network and its users have been up to over the last week.
Only a few days before the jump in transactions, the SHIB burn rate spike (about 1.1 billion SHIB) may have had an impact on how the SHIB community saw the token's worth.
The removal of such a sizable amount of the cryptocurrency's circulating supply might have made SHIB tokens seem more scarce, prompting a spike in trading and transaction activity.
Moreover, the burn event itself may have sparked a chain reaction as traders and investors bought, sold, and transferred SHIB tokens to take part in or profit from the burn.
Rekindled interest in Shiba Inu as a cryptocurrency may have been another cause for the network's rise in transaction volume.
Shiba Inu may be garnering more capital and interest as the overall crypto market expands and more investors explore possibilities in digital assets.
Further changes to the network, such as the inclusion of new services or joint ventures, may have further bolstered investor trust and encouraged more transactions.
As the SHIB community waits for Shibarium, its Layer 2 blockchain solution, a recent tweet by Shytoshi Kusama, the Shiba Inu lead developer may show that renewed interest may be coming for Shiba Inu.
SHIB holders and investors started to accumulate the memecoin in anticipation of Shibarium a long time ago, pushing the number of Shiba Inu addresses to about 1.3 million addresses.
Adding to the excitement for the upcoming Shibarium, Shiba Inu's lead developer has also updated his profile location to "in the lab", according to the SHIB community's Twitter profile, SHIBARMY.
According to CoinMarketCap, SHIB is bullish over the last week and has risen by 2%. it is slightly bearish over the last day, however, and is down by 0.13%.
As per IntoTheBlock, however, SHIB is currently not very bullish as seen in the snapshot below.
As shown above, SHIB is mostly bearish, with two on-chain signals showing bearish conditions and two showing neutral conditions.
The cryptocurrency trades at $0.00001092 at the time of writing. It is recording gains of 5.69% in the last 30 days and is expected to hit $0.00001131 by the end of April, according to the CoinMarketCap price estimation feature.
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