- Shibarium, the Shiba Inu Layer-2 blockchain, boasts a swift average block time of just 5 seconds.
- SHIB holders show caution, but on-chain data signals potential bullish action on the horizon.
CoinHub, the premier source for crypto news, reports an exciting development: Shibarium now claims an average block time of 5 seconds, marking it as one of the fastest Layer-2 blockchains in the cryptocurrency realm. The Shiba Inu team has masterfully re-introduced the Shibarium L2 network in private mode, addressing earlier technical glitches. Meanwhile, SHIB’s price hovers at a stable $0.0000008, but the digital winds suggest that bullish times might soon be upon us.
FUN FACT 🐶⛓️#Shibarium has an average block time of only 5 secs, making it one of the fastest L2 blockchains in crypto industry! pic.twitter.com/iS03cCxFPG
— CoinHub (@CoinHubCC) August 27, 2023
A Stumble Before the Rise: Shibarium’s Initial Challenges
After its launch on August 16, Shibarium faced a host of technical challenges, leading to its temporary shutdown. This move provoked apprehension among the Shiba Inu community, with many transferring their SHIB tokens to self-custody, fearing potential network vulnerabilities.
A Dip in SHIB Market Supply
Since the launch of Shibarium, the SHIB tokens deposited in crypto exchange wallets witnessed a notable decrease, hitting their lowest in over a year, despite the safety net of a $2 million insurance scheme. An analysis from Cryptoquant showcases that from August 17 to 26, holders withdrew a staggering 1.8 trillion SHIB tokens, equal to $14.5 million based on the current market rate. This exodus represented over 10% of Shiba Inu’s average weekly trading volume.
Such withdrawal patterns emphasize the possibility of a supply squeeze. The successful re-establishment of Shibarium could prove pivotal for the SHIB price, especially if the prevailing market uncertainty eases and demand skyrockets.
Shiba Inu Network Activity Takes a Break
Recent disturbances related to Shibarium have made many Shiba Inu network participants adopt a wait-and-see approach, limiting their transactional activities. Data reveals a 56% drop in daily active addresses since August 16. Such a decrease in network participation aligns with SHIB’s price remaining neutral, maintaining its steady pace around the $0.0000008 mark.
Prospects Brighten for SHIB’s Future
As the market waits with bated breath, on-chain indicators and analysis predict that SHIB might soon target the $0.000014 price range when market demand reignites. The In/Out of Money Around Price (IOMAP) data reinforces this belief. A glance at the chart shows that 370,440 holders purchased a whopping 272.9 trillion SHIB at an average rate of $0.000011. If market demand picks up pace, a bullish push towards $0.000014 seems plausible.
However, if uncertainty surrounding the Shibarium relaunch lingers, bearish sentiments could pull prices below $0.000006. The fate of SHIB might largely depend on holders who acquired their tokens at this average price. Their decisions might either trigger a recovery or push prices further down.
Current SHIB Landscape: A Calm Before the Storm?
The current state of SHIB is marked by low volatility, trading steadily at $0.00000813 for the past week. This stability might herald a significant price move, and the global in/out of the money (GIOM) metric from IntoTheBlock offers valuable insights. As per the GIOM data, a vast segment of SHIB holders are “in the money,” hinting at a possible resistance level for the coin. However, the coin’s present low volatility, combined with anticipated developments like the Shibarium relaunch, holds the promise of driving SHIB’s price northwards.
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