- Shibarium’s rapid growth and 65,530% burn rate spike underscore SHIB’s increasing value potential.
- Balanced MVRV and bullish long/short ratio suggest cautious optimism for future price gains.
As a seasoned crypto investor with over a decade of experience under my belt, I find myself intrigued by Shiba Inu’s [SHIB] recent developments. The rapid expansion of Shibarium and its impressive burn rate have certainly piqued my interest. With a 65,530% burn rate spike and over 430 million transactions in just the last few months, it’s clear that SHIB is not shy about making moves.
The Shiba Inu blockchain, known as Shibarium, has experienced swift growth, with an impressive 430 million transactions and over 2 million active wallet users.
These figures spark optimism around SHIB’s potential, especially with its recent burn rate spike of an extraordinary 65,530%. This deflationary surge aims to limit the token’s supply, potentially boosting its value over time.
Currently, Shiba Inu (SHIB) is trading at $0.00001702, representing a slight 0.96% rise for the day. The pertinent question now is: Could Shibarium’s growth propel Shiba Inu to make a significant leap forward?
Are addresses and transaction count indicators of growth?
Over the past day, there’s been a notable surge of 0.89% in daily active Shiba Inu wallets, according to CryptoQuant. This persistent growth suggests that users are maintaining a high level of involvement with Shibarium, indicating sustained enthusiasm for the coin.
Furthermore, there’s been a 1.63% rise in the number of transactions, suggesting an uptick in network activity.
Although the consistent growth is promising, it hasn’t quite reached the point of rapid expansion yet. To draw in a wider range of investors and potentially boost SHIB’s value, Shibarium’s platform might require a more dramatic increase in both activity and functionality.
Increased involvement might indicate wider acceptance, potentially paving the way for upcoming price surges in the future.
What the MVRV ratio tell us about SHIB’s value
The Shiba Inu’s Market Value to Realized Value (MVRV) ratio, which stands at 1.32%, suggests that those who have recently invested in Shiba Inu may be experiencing a slight profit margin.
At this relatively low value, Shib appears not to be excessively overpriced, potentially allowing for continued accumulation without causing a surge in selling due to profit-taking.
If the Market Value to Realized Value (MVRV) ratio significantly increases, it could suggest that the asset is overvalued, potentially triggering higher selling rates. As a result, the current moderate MVRV ratio indicates a cautious optimism, offering new investors an opportunity to enter the market without an immediate fear of a sudden sell-off.
Does the long/short ratio reveal bullish sentiment?
Initially, we analyzed the balance between long and short positions for SHIB, revealing that approximately 57.52% of these positions are long, while around 42.48% are short. Given this distribution, it appears that the market is optimistic about SHIB’s price increase, as most traders anticipate a bullish trend.
Nonetheless, the substantial percentage of shorts suggests some caution, as a shift in sentiment could trigger selling.
The balance between the length and shortness of this ratio indicates a generally positive but watchful stance among traders. They are investing in Shiba Inu (SHIB), hoping for its growth potential, yet keeping a close eye out for any signs of market turbulence.
Read Shiba Inu [SHIB] Price Prediction 2024-2025
Odds of a SHIB rally
The combined expansion of Shibarium, along with the increasing pace at which SHIB is being destroyed, sets the stage for possible price increases. Daily users and transactions suggest consistent involvement, but they might need to speed up significantly to spark a major price surge.
The balanced MVRV ratio and slightly bullish long/short sentiment provide encouraging signals. Therefore, Shiba Inu’s ecosystem seems well-positioned for growth, but the next wave of activity could be crucial for a definitive breakout.
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2024-10-27 23:04