Shiba Inu Network Explodes with New Users and Active Accounts

Shiba Inu has seen a surge of 780 new users and a 148% increase in active accounts within 24 hours. This influx of users coincides with an increase in the burn rate, the development of Shibarium, and a slight dip in SHIB price.

Shiba Inu Network Experiences Surge in New Users, Active Accounts

May 8, 2023

The Shiba Inu blockchain network has witnessed a remarkable surge in new users and active accounts, according to data from Shibariumscan. Over the past 24 hours, the network has welcomed a staggering 780 fresh accounts, a significant increase from the 45 accounts registered on the previous day.

This influx of new users has led to a substantial 148% spike in active accounts, rising from 977 to 1,453 within the same timeframe. The catalyst behind this sudden surge remains speculative, but it undoubtedly highlights an exceptional phenomenon unfolding within the Shiba Inu ecosystem.

Factors Driving Popularity

Several factors may be contributing to the renewed interest in Shiba Inu. One potential catalyst is the recent surge in the token's burn rate. On May 6th, over 81 million SHIB tokens were permanently destroyed, marking a substantial 4,000% increase in the burn rate.

Source: Shibburn

Furthermore, the development of Shibarium, Shiba Inu's layer-2 blockchain solution, has generated considerable enthusiasm within the community. In mid-April, the team released a new user interface, promising faster and smoother compatibility with prominent self-custody wallets such as MetaMask, Coinbase Wallet, and Trust Wallet.

SHIB Price Consolidation

As of May 8th, Shiba Inu (SHIB) has been consolidating within a narrow range since April 11th. Currently trading at $0.0000227, it has experienced a 4.33% decline over the last 24 hours. The market cap stands at $13.53 billion, while the trading volume has reached $281 million.

Source: TradingView

SHIB/USD 1-day price chart

Shiba Inu is oscillating between a support level of $0.00002083 and a resistance level of $0.00002800. The Relative Strength Index (RSI) sits at 42, indicating neutral momentum. The cryptocurrency is trading slightly above the 50-day Exponential Moving Average (EMA) and well above the 200-day EMA, suggesting a potential bullish undertone.

Despite SHIB's recent price dip below $0.000024, its On-Balance-Volume (OBV) has remained steady. This indicates that selling pressure may be less severe than anticipated. If the OBV holds, the price could potentially stabilize or witness a slight recovery.

Furthermore, data from IntoTheBlock shows a 382% increase in daily transactions exceeding $100,000, now totaling $60 million. The number of daily active addresses is also rising, albeit at a slower pace.

Conclusion

The surge in new users and active accounts on the Shiba Inu blockchain network is a testament to the growing popularity and adoption of the ecosystem. The burn rate surge and the development of Shibarium have likely played a role in attracting new interest. While the price of SHIB has recently declined, technical indicators suggest potential bullishness in the medium term. The steady OBV and the increase in high-value transactions indicate that the selling pressure may be waning. As the community eagerly awaits further developments, it remains to be seen whether the Shiba Inu ecosystem will continue to gain momentum in the future.