Shibarium Reaches Key Goals: Is SHIB Poised For New Heights?
August 30 2023 - 5:00PM
NEWSBTC
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. Related Reading: $28,100 Next
Level To Break For Bitcoin, Here’s Why 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. Related Reading:
Large Transactions Put XRP Price Under Pressure: Are Whales Making
An Exit? 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 TradingView.com
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