- Shiba Inu (SHIB) has been experiencing substantial consolidation recently.
- Whale activity in SHIB has decreased by 60%, while Shibarium’s performance has also been lackluster.
- However, the SHIB burn rate has surged by over 500%, with over 10 million tokens sent to a null address in recent times.
Shiba Inu (SHIB): Whale activity decreases, but burn rate surges as Shibarium underperforms.
Significant Decline in Key SHIB Metrics
Major meme coins like Dogecoin (DOGE) and some others have seen notable price increases, with Shiba Inu (SHIB) also experiencing a minor uptick, currently valued at approximately $0.00001787 according to CoinGecko. Despite this, several crucial SHIB metrics have shown a marked decline in the past 24 hours.
The daily transaction volume for SHIB, where each transaction exceeds $100,000, has plummeted to around $10 million, reflecting a stark 60% fall from the figures recorded on July 21. Moreover, Shibarium, the layer-2 blockchain solution aimed at enhancing the Shiba Inu ecosystem, has also seen its active accounts drop significantly, from 667 in late July to a mere 107 currently, and daily transactions have decreased by nearly 85%.
Challenges for Shibarium
Shibarium’s primary objective since its launch in August last year has been to facilitate the growth of the Shiba Inu ecosystem by lowering transaction costs, improving scalability, and enhancing transaction speed. Despite undergoing two major upgrades, including a new user interface update designed for compatibility with popular self-custody wallets such as Coinbase Wallet, MetaMask, and Trust Wallet, the platform has not been able to maintain user interest and engagement.
For continuous updates regarding Shibarium’s development and other news related to Shiba Inu, readers are encouraged to stay tuned to our latest articles.
Positive Developments Despite Challenges
Despite the overall negative trends, not all metrics related to Shiba Inu have been bleak. The burn rate of SHIB has experienced a substantial increase, surging by more than 500%. This increase has resulted in over 10 million SHIB tokens being destroyed within a short period. Although the USD value of the burned tokens might seem minimal, persistent efforts in reducing the token supply can have a positive long-term impact on its valuation.
The SHIB burning mechanism is strategically designed to decrease the vast supply of the meme coin, thereby creating scarcity that could potentially result in an increase in price, provided that the demand either remains stable or grows. Currently, over 41% of SHIB’s total supply has been burned, leading to a reduction in the circulating supply to approximately 583 trillion tokens.
Conclusion
In summary, while Shiba Inu (SHIB) faces significant challenges including reduced whale activity and underperformance of Shibarium, the notable rise in the SHIB burn rate provides a silver lining. The substantial token destruction could prove beneficial for its future valuation given the reduced supply. Investors and stakeholders should keep an eye on these developments to gauge the potential longer-term impacts on SHIB’s market performance.
