Shiba Inu, the popular meme coin, could potentially experience a rally, as a key metric related to the Shibarium network is indicating bullish signs. Shibarium is an Ethereum Layer 2 blockchain that has been witnessing a significant rise in the number of new verified contracts.
Recently, the number of new verified contracts on the Shibarium network increased by a remarkable 530% in a single day, marking it as one of the top 5 highest days for new verified contracts. The figure rose from 4 contracts the previous day to 19 contracts on Monday.
This spike in new verified contracts resulted in the total number of verified contracts reaching a record high of 430 as of Wednesday morning. Furthermore, other metrics such as total accounts and completed transactions also demonstrated growth, with total accounts crossing 25,700 and completed transactions nearing 2.7 million.
The increased usage of the Shibarium network as reflected by the surge in verified contracts is significant for Shiba Inu as it plays a vital role in the ecosystem as its governance token. Higher usage leads to increased demand, which in turn can drive up prices for the coin.
Typically, a rise in new verified contracts for networks that support decentralized finance (DeFi) protocols indicates that more developers are choosing to build on the network. This, in turn, can attract more users and increase demand for the network.
However, it’s worth noting that Shibarium is currently facing challenges, as its active accounts have been declining. On Wednesday, active accounts stood at 589, down from its peak of 7,729 recorded on August 26, 2023. Additionally, the network has witnessed a decline in its Total Value Locked (TVL), falling from its all-time high of $1.47 million to $600,000 at the time of writing. These factors suggest a diminishing interest in the network.
Furthermore, Shiba Inu is currently trading below its 50-day and 100-day moving averages, which can be seen as bearish signals for the coin’s price. However, it is important to note that if the cryptocurrency market were to start another bull rally, this could serve as a potential turning point for Shiba Inu.
As with any investment, it’s essential to consider the various factors and conduct thorough analysis before making any decisions.
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