Shiba Inu Indicates Possible Growth Amid Layer-2 Blockchain Developments

CryptoPotato posits that Shiba Inu (SHIB) could potentially experience a transient surge, bolstered by advancements in its layer-2 blockchain solution, Shibarium, and a resurgence within the meme coin industry. In spite of a 3% price decline spanning two weeks and recent underperformance, key metrics and factors indicate the correction may be nearing its conclusion. According to data from CryptoQuant, the SHIB exchange has experienced a single positive netflow in the last eight days. This trend is considered favorable as it signifies a transition from centralized exchanges to self-custody methods, which alleviates instantaneous selling pressure.

Additionally, the burning program of the asset may contribute to a possible rally. Since the start of 2024, the fire rate has increased on multiple occasions in recent weeks, destroying more than 9 billion tokens along the way. The objective of this mechanism is to diminish the substantial quantity of SHIB in circulation, thereby potentially increasing its value as time passes. A recent update introduced by the Shibarium team aims to automate the process of token burning, thereby diminishing the need for manual intervention. Additional progress in the layer-2 scaling solution may also contribute to the potential increase in SHIB. Debuted in August 2021, Shibarium aims to foster the expansion of the meme coin's ecosystem through the reduction of transaction fees and the enhancement of speed.

A potential resurgence of the meme coin industry may also contribute to the acceleration of the SHIB rally. Meme coins occasionally mirror one another's performance, and a considerable number are presently flourishing, especially those constructed on Solana, which have witnessed a substantial surge in value over the past few weeks.