Shiba Inu has staged a notable recovery after weeks of lackluster performance, registering a 5% increase in the past 24 hours to trade at approximately $0.00001232, according to data from CoinGecko.
The cryptocurrency's upward movement coincides with a significant resurgence in Shibarium, its layer-2 blockchain solution. The network processed nearly 250,000 transactions in the past day, marking a substantial increase from early-month activity levels. Shibarium was specifically developed to enhance the meme coin's ecosystem functionality and utility.
Analyst Davinci Jeremie recently addressed Shiba Inu's potential, linking its future performance directly to Shibarium's development progress. "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," Jeremie stated. "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."
The analyst emphasized current utilization challenges facing the network. "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," he concluded.
Exchange netflow data represents another significant factor potentially influencing SHIB's price recovery. CryptoQuant metrics indicate a downward trend in netflow over the past week, suggesting investors may be moving tokens from centralized platforms toward self-custody solutions. This shift typically reduces immediate selling pressure on the asset.
The same analytics platform reports that SHIB's exchange reserves have fallen to approximately 94.2 trillion tokens. This figure represents a nearly four-year low for the cryptocurrency's centralized exchange holdings.
Broader market conditions also appear to be contributing to Shiba Inu's positive performance. Bitcoin, Ethereum and most major digital assets have posted solid gains in the last 24 hours, partially offsetting losses accumulated in recent weeks. Meme coins like SHIB frequently mirror these wider market movements rather than operating independently.
Market observers note that upcoming economic data releases could introduce additional volatility. The forthcoming U.S. Consumer Price Index report and potential peace negotiations regarding Ukraine may significantly impact cryptocurrency valuations in the coming days.
These developments could either reinforce the current bullish trend or allow bearish sentiment to reassert control, depending on how markets interpret the news.
Analysts remain divided on whether SHIB's recovery represents a temporary bounce or the beginning of a sustained upward movement.