Shiba Inu (SHIB) saw a significant spike in a major metric, signaling a bullish outlook for the second-largest coin by market capitalization. Despite this, the Shiba Inu price has not responded positively, which can undoubtedly be a concern for token holders.
Shibarium sees an increase in active accounts
Data from Shibariumscan shows that the number of active accounts on the layer 2 network rose from 1,290 on April 27 to 3,839 on April 28, an increase of more than 144%. Such a development is optimistic for Shiba Inu, considering how the layer 2 network has been integral to the success of the piece itself since it launched last year.
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Shibarium also saw the number of new transactions on the network increase from 4,997 on April 27 to 12,191 on April 28. This is even more optimistic for Shiba Inu since the amount of SHIB burns done by Shibarium depends on the number of transactions it records. Meanwhile, these aren’t the only recent bullish developments for Shiba Inu.
NewsBTC recently reported that SHIB’s leading decentralized exchange (DEX), ShibaSwap, is expansion in Shibarium. This move is expected to increase the user base of ShibaSwap and, by extension, Shibarium. Shiba Inu will ultimately benefit since an increase in Shibarium’s user base means more transactions, leading to more transactions. SHIB burns.
Why Shiba Inu is broken
Seeing how these metrics give a bullish outlook for the meme coin, it is not out of place to wonder why Shiba Inu has experienced significant price drops lately. One of the reasons for this price decline is the price action of Bitcoin. Data from the market intelligence platform In the block shows that SHIB’s price correlation with Bitcoin is currently 0.82%, suggesting a “strong positive correlation” between the two tokens.
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Therefore, the price of SHIB has reflected Bitcoin, which has seen significant price drops recently. Another reason for the Shiba Inu price decline is the decline in large transactions, with data from IntoTheBlock showing a 4.60% decline in this crucial metric.
This suggests that Shiba Inu Whales Investors are considering their investment in the meme coin as this recent downtrend in the market could affect their confidence. These whales play a major role in SHIB’s price discovery, and the price of the meme coin could increase once they regain their confidence in the market.
A decline in the Shiba Inu’s burn rate has also contributed to its recent decline. Data of Shibburn burns tracking site shows a 76% drop in the number of SHIB tokens burned over the past seven days and a 79% drop over the past 24 hours.
SHIB price falls amid market crash | Source: SHIBUSDT on Tradingview.com
Featured image of Bitget, chart from Tradingview.com
