WazirX Hack Triggers SHIB Price Drop Despite Positive Market Metrics

• Today’s plunge in SHIB prices has unsettled the crypto market, causing a 7% decline at one moment.
• Market tension escalated as the entire cryptocurrency landscape faced downward pressure.
• Key events include a significant breach in an Indian cryptocurrency exchange amounting to $230 million.

SHIB plunges by 7% amid a $230 million breach in India’s top cryptocurrency exchange, sparking market-wide volatility and liquidity issues.

Fiasco at WazirX: Culprit of Shiba Inu’s Sudden Drop

Earlier today, WazirX, a leading cryptocurrency exchange in India, disclosed a severe security breach. The reported compromise occurred in one of their multisignature wallets, leading to a loss exceeding $230 million. Among these losses, $100 million were in SHIB tokens, triggering significant selling pressure.

Market Reaction and Liquidity Concerns

The cyberattack’s ramifications spread swiftly, resulting in assets listed on WazirX, including SHIB, BTC, and USDT, trading at discounted rates. This price disparity illustrates liquidity complications and heightened selling pressure on these tokens.

Intriguing Shifts Despite the Plummet

Despite the market turmoil, some metrics underline contrasting positive signals. Notably, the SHIB burn rate surged by 450%, inherently reducing the circulating supply of SHIB tokens, which is a favorable development for the token’s price stability.

Whale Activity and Shibarium’s Metrics

In another intriguing development, Shiba Inu whales appeared active, significantly increasing high-value transactions. According to IntoTheBlock, the aggregated daily volume for transactions exceeding $100,000 soared to $900 million, marking an 1800% increase. Additionally, metrics associated with Shiba Inu’s layer-two Ethereum scaling solution, Shibarium, also showed positive trends.

Conclusion

Despite the recent WazirX breach causing substantial market unrest and a SHIB price drop, fundamental indicators for Shiba Inu remain robust. The increased burn rate and heightened whale activity signal a resilient underlying value in SHIB tokens, offering a cautiously optimistic outlook amidst the current volatility.