Shiba Inu Network Activity rises by 198%
There are finally some signs of recovery that can be seen in the ShibaInu token, especially after it recorded a rise in its network activity.
On-chain data shows that there was a staggering increase in the number of daily active addresses on the ShibaInu network in the previous week, as they climbed by nearly 198%.
The most significant amount of growth was recorded a day earlier, which suggests that this could be the first signs of an impending recovery in the price of the SHIB token.
The data
According to the latest data, the price of the ShibaInu token is currently hoving near the $0.00000718 mark.
The second-largest meme token has been struggling recently when it comes to maintaining a strong position in the market.
However, the latest surge in network activity could actually prove to be a game-changer for the token. In the last few weeks, the price of the Dogecoin rival has remained mostly stagnant.
But, the recent surge that was recorded in the number of daily active addresses could actually prove to be a precursor to a rally in its price.
Even though it is still too early to come to any definitive conclusions, the price of the asset has shown considerable resilience even though the broader crypto market has mostly been bearish.
The factors
One of the primary factors that could be contributing to this rise in network activity is the increasing prominent of ShibaInu in the world of decentralized finance (DeFi).
As an increasing number of users are engaging with the ShibaInu ecosystem, there could potentially be a rise in liquidity for the SHIB token along with its trading volume.
This could eventually end up giving its price a boost. It is also interesting to note that the total value locked (TVL) on Ethereum is declining, but that on ShibaInu has managed to hold steady.
There have not been any serious declines in the TVL on ShibaInu of late. While it is still not as substantial as Ethereum, it can be considered a positive sign for the SHIB token.
This would be especially true if the decline on Ethereum continues.
Other factors
But, it is also essential to note that there could also be a rise in volatility because of the surge in the daily active addresses.
Therefore, investors need to rely on other factors along with this metric when it comes to making decisions.
There are other on-chain metrics, such as large wallets and transactional activity that should also be taken into account.
