Dogecoin‘s (DOGE) biggest memecoin competitor, Shiba Inu (SHIB), has started to show signs of recovery following the recent increase in network activity. According to on-chain data, the daily active wallet addresses of Shiba Inu saw a massive increase of 198% last week. The most significant part of this growth occurred yesterday, leading to speculations of an upcoming price recovery for SHIB.
Increase in Network Activity Could Change the Game
According to the latest data, SHIB is currently trading at $0.000007202, representing a 0.20% decrease. While Shiba Inu struggles to establish a strong position in the cryptocurrency market, this recent increase in network activity could potentially change the game.
Shiba Inu’s price has been relatively stagnant in the past few weeks, but the recent increase in daily active wallet addresses could be an indication of an upcoming price rally. While it is still too early to draw definite conclusions, the altcoin is showing some strength against the overall market downtrend.
The Main Driver of the Increase in Network Activity: DeFi
One of the main drivers contributing to this increase is the growing importance of Shiba Inu in the decentralized finance (DeFi) sector. As more users interact with Shiba Inu’s ecosystem, the asset has the potential to attract more liquidity and trading volume, which can drive up its price.
Interestingly, while the total value locked (TVL) in the Ethereum (ETH) network has been decreasing, Shiba Inu’s TVL has remained relatively stable without significant drops. Although this may not be as significant compared to Ethereum, it is a positive signal for Shiba Inu, especially if the largest altcoin continues to lose ground.
On the other hand, it is crucial to note that the increase in wallet activity can lead to increased price volatility. Therefore, investors should continue to exercise caution and not rely solely on one metric before making investment decisions. Other on-chain measurements, such as transaction activity in large wallet addresses, are equally important.
