Shiba Inu (SHIB), a meme token-based cryptocurrency dubbed the "Dogecoin killer", is seeing a surge in network activity amid the market-wide partial recovery.
According to cryptocurrency analyst Ali Martinez, the Shiba Inu registered 2,538 new addresses in a single day, marking the highest increase in network activity in the last three months.
Network activity in cryptocurrencies can indicate the level of adoption, usage, and demand for a particular coin.
In general, a higher network activity means more people use the coin for various purposes such as payments, transfers, trading or investing. This could also affect the price of the coin, as more demand could lead to higher valuation.
However, it should be noted that the increase in an altcoin's network activity can be caused by many factors, meaning network activity is not always a reliable indicator of a coin's performance or potential.
Withdrawals from Exchanges Accelerated in Bitcoin
Meanwhile, Bitcoin (BTC) is also showing signs of strengthening as investors withdraw their coins from exchanges. Martinez noted that in the past three days, 14,000 BTC worth approximately $372.4 million have been mined from known crypto exchange wallets. This may indicate that investors are holding their Bitcoin instead of selling it in the market and entering a bullish trend.
Ali Martinez draws attention as a cryptocurrency analyst and content writer who has been in the industry since 2014.
*Not investment advice.
