Shibarium Transactions Surge 70% as SHIB Price Sees Green

TL;DR

• Shibarium experienced a 70% increase in daily transactions, indicating a resurgence in activity.
• SHIB’s price rose nearly 10%, but caution is recommended due to potential overbought conditions.

A Notable Comeback

Recently, the layer-2 scaling solution for Shiba Inu has experienced limited activity, disrupting the progress seen at the beginning of the year. Nonetheless, certain metrics have shown a significant upward trend in the last 24 hours.

Recent data indicates that the network handled 7,715 new transactions on September 18, marking a 70% rise from 4,537 on September 17.

Additional metrics for Shibarium that have shown improvement on a daily basis include an increase in new verified contracts and active accounts.

This L2 blockchain solution officially launched last August. It aims to promote the growth of the Shiba Inu ecosystem by reducing transaction costs, enhancing speed, and improving scalability.

Recently, the team implemented a burning mechanism called “Burn Portal.” Its main objective is to diminish the circulating supply of SHIB tokens, making them scarcer and potentially increasing their value over time. 

The initiative is closely linked to Shibarium’s blockchain activities. With each transaction on the network, a portion of the fees paid in Bone ShibaSwap (BONE) is utilized to buy SHIB tokens from the market. That quantity is subsequently sent to a null address.

In contrast, the previous mechanism employed by Shiba Inu was heavily reliant on community-led initiatives and voluntary token burns from holders rather than an automated or protocol-driven system.

For more updates on the ecosystem, be sure to check our Shibarium news.

SHIB Price Forecast

Some market participants speculate that the further progress of Shibarium could be a contributor to a bullish trend for Shiba Inu. Over the last 24 hours, the meme coin’s price has increased by nearly 10%, currently trading at around $0.00001427 (according to CoinGecko data).

This rise aligns with a broader recovery in the cryptocurrency market, as Bitcoin (BTC) surpassed $63,000 for the first time since late August. The optimistic trend was likely supported by the US Federal Reserve’s 0.5% interest rate cut.

Despite SHIB’s strong rebound, traders are encouraged to proceed with caution due to the asset’s inherent volatility and the rising Relative Strength Index (RSI). This technical analysis indicator evaluates the rate and magnitude of price changes to assist traders in identifying overbought or oversold situations. 

The RSI operates on a scale from 0 to 100, where readings above 70 indicate overbought conditions and potential price corrections. The ratio hit that threshold earlier today (September 19).