Is SHIB’s Price in Trouble as These Key Shiba Inu Metrics Nosedive?

TL;DR

• Shiba Inu (SHIB) has been consolidating as of late, with whale activity dropping by 60% and Shibarium underperforming.
• On the other hand, the SHIB burn rate has increased by over 500%, resulting in more than 10 million assets sent to a null address.

These Indicators Head South

Some leading meme coins, including Dogecoin (DOGE) and dogwifhat (WIF), have witnessed significant price increases as of late. Shiba Inu (SHIB) is also in the green, albeit recording less substantial gains. Its value is up 0.5% on a daily scale, currently worth approximately $0.00001787 (per CoinGecko’s data).

Interestingly, the minor success coincides with some important SHIB-related metrics that have plunged in the past 24 hours. Aggregated daily volume (where each transaction exceeds $100,000) is around $10 million, representing a 60% decrease compared to the figure observed on July 21.

The layer-2 blockchain solution – Shibarium – has also taken a step back if considering some of its indicators. Data shows that active accounts on the protocol have plummeted from 667 on July 21 to 107 as of now. For its part, the total number of daily transactions has nosedived by nearly 85%. 

Shibarium officially went live in August last year and is aimed at fostering the development of the Shiba Inu ecosystem. Its primary purposes are lowering transaction costs, enhancing scalability, and improving speed. 

The L2 scaling solution underwent two major upgrades in the past several months, such as launching a new user interface (UI) update. Its main goal was to allow compatibility with popular self-custody wallets, including Coinbase Wallet, MetaMask, and Trust Wallet. For more updates on the matter, make sure to check out our Shibarium news.

The Bright Side

It is worth mentioning that not all Shiba Inu-related metrics have headed south on a 24-hour scale. The SHIB burn rate has exploded by over 500%, resulting in over 10 million tokens destroyed.

The USD equivalent of the stash might be insignificant, but continuous efforts in that field can positively impact the valuation. 

The burning mechanism aims to reduce the meme coin’s tremendous supply, while the subsequent scarcity could lead to a price rally (assuming demand stays the same or rises). So far, over 41% of SHIB’s total supply has been sent to a null address, with over 583 trillion tokens currently in circulation.