TL;DR

• The L2 blockchain solution reached a fresh milestone, but SHIB’s price is down 3% for the day.
• Weak token burns and rising exchange inflows indicate that the pullback may intensify in the short term.

Hitting Another Target

Shiba Inu (SHIB) remains one of the most popular crypto projects, which in recent years evolved from a meme coin to a complex ecosystem. One of its features is the layer-2 scaling solution Shibarium, which aims to reduce transaction fees, improve speed, and enhance scalability.

It officially saw the light of day in August 2023 and has made serious progress since then. Approximately a month ago, the number of transactions processed on Shibarium exceeded one billion. The figure currently stands at over 1.12 billion. 

Earlier today (April 30), the protocol blasted through a new important milestone. Specifically, the total number of wallet addresses that have interacted with Shibarium since its launch surpassed 200 million. 

The L2 blockchain solution has garnered the attention of multiple industry participants in the past months, some of whom believe SHIB’s potential rally during this bull cycle depends heavily on it. An example is the popular Bitcoin advocate Jeremie Davinci, who said:

“I like Shiba Inu, as you know, and I think it will do relatively well in this cycle, but it may not go as high as you expect. I think Shiba Inu has a lot of utility now that they have Shibarium, and basically, it’s a chain that you can actually run all kinds of applications.

However, nobody is using it, and there are no applications for using your tokens on Shibarium yet. If they get that solved, Shiba Inu will go to the moon.”

SHIB Price Outlook

Despite Shibarium’s latest achievement, Shiba Inu remains in the red today, retreating by approximately 3% and currently trading at $0.00001323 (per CoinGecko’s data).

Moreover, some factors suggest the pullback could deepen in the short term. For example, the token burn mechanism has removed only a small amount of SHIB over the past week. Its main purpose is to reduce the massive circulating supply, potentially increasing the token’s value through scarcity. However, demand must head north – or, at the very least, not decline for this to have a real impact.

Shiba Inu’s exchange netflow is also worth observing. In the past several days, inflows have surpassed outflows, hinting that investors have shifted toward centralized exchanges. This, in turn, increases the immediate selling pressure.