- Shiba Inu has entered a consolidation phase, experiencing a notable 60% decline in whale activity.
- Its Layer-2 network, Shibarium, is also underperforming, evidenced by a significant reduction in active accounts and transactions.
- Despite these trends, the SHIB burn rate has impressively increased by over 500%, erasing over 10 million tokens from circulation.
Discover the latest trends in the Shiba Inu ecosystem, including whale activity, Shibarium performance, and an unprecedented surge in the SHIB burn rate.
Shiba Inu’s Current Market Situation
Shiba Inu, a well-known meme cryptocurrency, is currently in a consolidation phase. While the token’s daily value has seen a slight uptick of 0.5%, trading around $0.00001787, underlying metrics reveal more complex dynamics. Whale activity, which refers to large transactions exceeding $100,000, has plummeted by approximately 60%, bringing the total daily volume to roughly $10 million as of July 21st.
Performance of Shibarium, Shiba Inu’s Layer-2 Network
Shibarium, designed to enhance the Shiba Inu ecosystem by reducing transaction costs and improving scalability, has shown signs of underperformance recently. Active user accounts have decreased from 667 to just 107, and daily transactions have nosedived by nearly 85%. These figures suggest a waning interest in Shibarium despite its previous upgrades to support various wallet interfaces like Coinbase Wallet, MetaMask, and Trust Wallet.
Impact of Increased SHIB Burn Rate
One silver lining for Shiba Inu is the dramatic increase in its burn rate, which has surged by over 500%. More than 10 million SHIB tokens have been sent to a void address, effectively removing them from circulation. While burning tokens worth less in USD terms might seem trivial, consistent burn efforts can positively impact the token’s valuation by lowering supply. To date, over 41% of SHIB’s total supply has been burned, although more than 583 trillion tokens still remain in circulation.
Conclusion
The recent trends in Shiba Inu’s ecosystem present a mixed outlook. While whale activity and Shibarium’s performance have declined, the increased burn rate offers a glimmer of potential positive impact on the token’s future valuation. Investors should remain cautious and carry out their own research to navigate the high volatility that characterizes the cryptocurrency market.
