In a surprising turn of events, Shiba Inu (SHIB) experienced a brief consolidation break, reaching a 10-day high of $0.00000850, following the overall market uptrend on Tuesday.
This upswing was further fueled by Grayscale’s legal victory against the US Securities and Exchange Commission (SEC). However, Shibarium, the Ethereum layer-2 network backed by SHIB tokens, was the most significant catalyst for the newfound optimism.
Shibarium’s Resurgence Fuels Bullish Sentiment For SHIB Price
Shibarium, the layer-2 blockchain explicitly designed for the Shiba Inu token SHIB, has achieved a significant milestone with a remarkable surge in wallet count, reaching 337,100.
This surge in new wallet addresses indicates renewed interest and heightened expectations, following recent challenges faced by the SHIB-backed layer-2 platform.
The surge in wallet activity clearly demonstrates restored confidence in Shibarium and its potential to provide an “enhanced user experience.” Moreover, the transaction count has rebounded significantly, recovering from a dip that saw daily transactions drop to 40,000 on August 27, after peaking at 132,000 on August 25.
The resurgence, growing confidence, and surge in new wallets and daily transactions have made Shibarium an attractive option for retail investors seeking faster, more cost-effective, and private off-chain transactions while benefiting from the underlying security of the blockchain.
After a difficult start, Shiba Inu delivered positive news by announcing the successful functionality of the highly anticipated Shibarium Bridge on August 28, 2023. This bridge facilitates seamless movement of funds from the Ethereum Layer-1 to the Layer-2 Shibarium platform, improving transaction speed and reducing fees.
Shibarium initially encountered challenges upon its launch, experiencing significant user and transaction volumes that caused an “outage.”
To tackle this issue, according to crypto influencer Keyur Rohit, Shytoshi Kusama, co-founder of SHIB, sought assistance from Sandeep Nailwal, co-founder of Polygon Labs. Together, they resolved the problems, ensuring the safety of funds. Kusama expressed gratitude to Sandeep for his help.
Notably, in the aftermath of the initial challenges, Shibarium undertook significant improvements. The team expanded their server infrastructure by an impressive 1500% to “better handle” on-chain congestion.
These corrective measures have resulted in rapid growth of the user base and an increase in the price of the SHIB token.
Additionally, Shibarium has achieved a notable Total Value Locked (TVL) of $1.42 million. This achievement signifies a significant milestone and reflects the increasing enthusiasm within the Shiba Inu network.
SHIB’s Uptrend At Risk?
SHIB’s recent recovery and positive developments within its native ecosystem have failed to sustain the initial excitement, as the token’s price action has experienced a sharp decline. Over the past 24 hours, SHIB has lost more than 3% of its value, currently trading at $0.00000813.
Adding to the concern is the token’s inability to surpass its 50-day Moving Average, as depicted by the brown line on the daily chart above. Since July 2023, when SHIB briefly surged to the $0.000001137 mark, it has struggled to break above this key moving average.
However, there is a glimmer of hope if the overall market, particularly the flagship cryptocurrency, Bitcoin (BTC), paves the way for improved liquidity in the emerging sector.
If SHIB manages to surpass this significant moving average, it could signal the potential for another strong uptrend, similar to the ones witnessed in July and January, during which the token reached its yearly high.
Featured image from iStock, chart from inew.news