Shiba Inu Shows Signs of Potential Upswing Amid Layer-2 Blockchain Developments

According to CryptoPotato, Shiba Inu (SHIB) may be poised for a short-term upswing, supported by developments in its layer-2 blockchain solution, Shibarium, and a resurgence in the meme coin sector. Despite underperforming in recent days with a 3% price drop over two weeks, key metrics and factors suggest the correction could be nearing its end. CryptoQuant data reveals that SHIB exchange netflow has been positive only once in the past eight days, with a shift from centralized exchanges to self-custody methods considered bullish as it reduces immediate selling pressure. The asset's burning program could also contribute to a potential rally. The burn rate has spiked on several occasions in recent weeks, with over 9 billion tokens destroyed since the beginning of 2024. This mechanism aims to reduce SHIB's massive circulating supply, making it scarcer and potentially more valuable over time. The Shibarium team recently introduced an update designed to automate the token burning process, reducing manual intervention. Further advancements in the layer-2 scaling solution could also fuel SHIB's possible upswing. Launched in August 2021, Shibarium aims to support the meme coin's ecosystem growth by reducing transaction fees and improving speed. A potential revival of the meme coin sector could be another factor propelling a SHIB rally. Meme coins sometimes follow each other's trends, and many are currently performing well, particularly those built on Solana, which have experienced a significant upswing in recent weeks.