According to IntoTheBlock, a prominent on-chain data analytics tool, SHIB New Addresses (number of new user wallets created daily) has hit a historic peak this week.
This comes just days after the SHIB team released a blog post stating that the Shibarium L2 network, is due to start burning 70% of base fees generated from transactions processed.
The Shibarium network is a newly-launched Layer-2 solution built by the Shiba Inu team to increase transaction speeds and improve scalability. It enables users to initiate transactions, transfer value and interact with decentralized applications (dApps).
More than 35 million transactions have already been initiated on the Shiba Inu’s Shibarium network since its much-anticipated launch in August this year.
Token burn often puts upward pressure on crypto prices, as it reduces the circulation supply of the asset. Unsurprisingly, the Shiba Inu team’s token burn announcement this week appears to have attracted a record number of new investors to the SHIB network.
After the blog post was published on Monday, the chart below depicts how Shiba Inu registered 2,240 new addresses on Wednesday, Dec 6. Notably, the last time that many SHIB wallets were created in a day was 4 months ago, on Aug 16.
Network Growth is a vital on-chain metric that measures the rate at which a blockchain ecosystem is currently attracting new investors. It essentially, tracks the number of new-user wallets created within a given period.
Logically, a significant increase in network growth is interpreted as a bullish signal. It indicates that new users are trooping into the SHIB ecosystem.
An increase in new addresses often evolves into increased market demand for the underlying native token as those users begin to carry out economic transactions.
SHIB Price Forecast: $0.00011 is the Next Significant Resistance
In the short-term, Shiba Inu price has delivered a blistering 21% growth performance in the first week of December. However, this historic surge in network adoption, in anticipation of the SHIB token burns is a strong indication of more bullish price action to come.
The Bollinger Bands indicator also confirms the growing bullish momentum. It shows that SHIB price has recently broken above the upper band at $0.000099.
However, for the bulls aim for a new 2023 peak, the must first scale the resistance at the $0.000011. Notably, that this was the previous yearly peak and those who bought at that range have now been holding the bag for nearly 4-months.
Strategic investors could put a “take-profit” order at that range, to front-run a major retracement.
But if bullish impact of the proposed SHIB burns, and rising number of new entrants kick in, the bulls garner enough momentum to smash through that resistance zone.
In the case of a pull-back, the bulls can rely on the lower Bollinger Band at $0.0000086 for initial support.