TL;DR

Shiba Inu (SHIB) has outperformed major cryptocurrencies with a 20% price increase over the past week. Positive developments for the meme coin include a significant increase in its token burn rate and upgrades to Shibarium.

SHIB Might be Gearing up for a Bull Run

The cryptocurrency market has witnessed a significant revival in the past week, with numerous leading assets, such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Solana (SOL), being well in the green. The popular meme coin Shiba Inu (SHIB) has recorded even more substantial gains than the aforementioned, with its price rising by 20% on a 7-day scale.

SHIB Price, Source: CoinGecko Various analysts outline optimistic predictions that the token is about to experience another bull run, while some important factors indicate the same scenario.

According to CryptoQuant, SHIB exchange reserves have dropped to around 150 trillion assets this week, the lowest level registered since February 2022.

A reduction in that metric means fewer Shiba Inu tokens are available for trading, resulting in enhanced scarcity and a potential price appreciation in time (assuming demand rises or stays the same). 

CryptoQuants data also shows that SHIB exchange netflow has been predominantly negative in the past week. Shifting from centralized platforms to self-custody methods is considered bullish since it decreases the immediate selling pressure.

Additional Contributing Elements

Shiba Inus burn rate increase and the advancement of the layer-2 blockchain solution—Shibarium—also indicate that the assets price might be ready to take off in the short term. As CryptoPotato reported, the burning mechanism skyrocketed by 500% earlier this month, resulting in millions of tokens being removed from circulation.

For its part, Shibarium underwent a major upgrade. The team behind the network launched a new user interface (UI) update, describing it as faster, smoother, and more accessible than ever. The developers also expanded compatibility with popular self-custody wallets such as MetaMask, Coinbase Wallet, Trust Wallet, and others.

Shibarium was officially introduced last summer and aims to foster the development of Shiba Inu by reducing transaction costs, improving speed, and enhancing scalability. If you are curious to learn more about the network, feel free to watch our dedicated video below: