Decoding SHIB’s On-Chain Data: Potential Run to Kill a Zero?

After winning back the resistance line, the next move for SHIB highly depends on several on-chain metrics.

Shiba inu happy with a boy coding.
Created by Kornelija Poderskytė from DailyCoin
  • Shiba Inu reclaims $0.000007 resistance after two unsuccessful attempts.
  • SHIB’s price movement paints strong parallels to the August 2023 bull run.
  • Shiba Inu’s lead dev draws attention to the main issue on Shibarium L2.

Shiba Inu (SHIB) has topped $245 million in large transactions in the last seven days, pointing to rising crypto whale activity. This has resulted in a short rebound rally for SHIB, mounting to the daily high of $0.00000728, according to CoinGecko.

SHIB held the reclaimed resistance level throughout the day with 3.6% gains, totaling the slight rebound rally to 5% in two weeks. Last week, Shiba Inu slipped away from the bear trap but was rejected twice at the $0.000007 resistance. 

At press time, SHIB is changing hands at $0.00000722 with a neutral whale concentration signal, according to blockchain analytics platform IntoTheBlock. The rebound rally is highly influenced by crypto whales, who scooped up 22 billion SHIB tokens on October 19.

All three alternative cryptos in the Shiba Inu Ecosystem benefited from the Monday rally. Shibarium’s gas fee token Bone ShibaSwap (BONE) fetched 1.9% gains in the last 24 hours, while Doge Killer (LEASH) added 0.28%. Shiba Inu’s latest partner, the artificial intelligence and memecurrency fusion Bad Idea AI (BAD), led the race with 14.36% daily profit.

Shibarium Launch Run: History to Repeat?

Shiba Inu’s last run to erase a zero from its market value occurred on August 15, 2023. During that time, Shibarium L2 mainnet officially launched in Toronto at The Blockchain Futurist Conference. However, the $0.00001 price range couldn’t locate the confluence, and SHIB fully retraced the profits in three days.

Meanwhile, Shiba Inu’s Layer-2 scaling solution continues to enjoy smooth operation at five seconds average block production time and a market cap of $180 million, according to ShibariumScan.io on-chain data explorer. 

Nevertheless, Shibarium L2 network usage is below 1%. At the same time, the transactions on the blockchain have dramatically plunged to around 10K per day, in contrast to the 260K in the early days of Shibarium mainnet’s public relaunch.

On the Flipside

  • Shiba Inu’s lead dev, Shytoshi Kusama, recently took to Telegram to complain about the relatively low total value locked (TVL) on Shibarium, the Layer-2 scaling solution for $SHIB.
  • The Layer-2’s success is overshadowed by the significantly dropped volume, going from $1.44M to 0.69M with a 2.9% daily increase, according to the on-chain analysis provided by DefiLlama.

Why This Matters

Blockchain metrics allow us to illustrate the sentiment of cryptocurrency holders.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.