Shiba Inu’s Layer 2 solution, Shibarium, has reached a significant milestone, sparking optimism among its growing community. According to a recent tweet by Shiba Inu team member @LucieSHIB, Shibarium saw a three-month high in contracts deployed, signaling increased developer interest and user confidence in the network.
Shibarium Hits Three-Month High In Contract Deployment
Shibarium, an Ethereum Layer 2 scaling solution developed within the Shiba Inu ecosystem, has recorded a notable surge in activity. Data from Shibariumscan reveals that on September 5, 34 new contracts were deployed on the platform, nearing the peak of 36 contracts deployed in July 2024. This boost follows Shiba Inu’s rollout of a developer toolkit designed to attract more projects to the network.
This uptick in contract deployment reflects rising confidence among developers and users, as the number of contracts deployed indicates the volume of projects being launched on Shibarium. As the Shiba Inu ecosystem continues to expand, this milestone marks a promising development for SHIB enthusiasts and investors.
SHIB’s On-Chain Metrics Point to Bullish Momentum
Alongside Shibarium’s milestone, Shiba Inu’s on-chain metrics support a bullish outlook for the meme coin. The Market Value to Realized Value (MVRV) ratio, a key indicator of whether an asset is overvalued or undervalued, currently stands at -2.067% for Shiba Inu on a 30-day timeframe. This suggests that SHIB is undervalued, as traders have been consistently realizing losses in recent weeks.
Furthermore, the Network Realized Profit/Loss (NPL) metric reveals a series of negative spikes since July 2024, signaling continuous losses among SHIB holders. Historically, such trends are often followed by capitulation, where traders liquidate their positions at a loss, potentially setting the stage for a price recovery.
SHIB Eyes 14% Gains Amid Positive Indicators
Shiba Inu has been on a downward trend since March 2024, reaching a low of $0.00001078 on August 5 before rebounding to $0.00001336. However, momentum indicators suggest the meme coin could be poised for further gains.
The Moving Average Convergence Divergence (MACD) indicator shows green histogram bars above the neutral line, signaling a positive shift in SHIB’s price momentum. Additionally, the Relative Strength Index (RSI) reads 45, just below the neutral level of 50, indicating potential for upward movement.
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Analysts predict SHIB could rally by 13.5%, pushing its price to $0.00001525, a key resistance level last seen on August 26. If SHIB can break through this level, it may pave the way for more significant gains in the near future.
Shiba Inu’s Shibarium network has reached a crucial milestone, with a surge in contract deployments reflecting renewed interest from developers. Coupled with bullish on-chain metrics, SHIB could be positioned for a price rally, potentially extending gains by 14%. As the Shiba Inu ecosystem continues to evolve, all eyes are on SHIB’s next move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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