- Recent market analysis shows that Shiba Inu (SHIB) has been significantly underperforming compared to major cryptocurrencies.
- In the past week, SHIB has declined by 7.26%, including a 2.58% drop in the last 24 hours.
- This performance contrasts sharply with Dogecoin (DOGE), which has risen by 12% over the same period.
Shiba Inu (SHIB) struggles while Dogecoin (DOGE) shines – What’s causing the downturn in SHIB?
Declining Metrics in Shibarium Impacting SHIB
The Shibarium blockchain network, a layer-2 solution built on Ethereum for the Shiba Inu ecosystem, has seen a significant decrease in activity. Data indicates that the number of active accounts has dropped from 667 to 113 within just two days, an 83% decline. Furthermore, the transaction volume has plummeted from 6,353 to merely 524, showing a waning user engagement and transactional activity.
Factors Contributing to Shibarium’s Decline
This drop in Shibarium’s metrics could be contributing to SHIB’s price decline. A lack of bullish sentiment, coupled with limited user and transactional engagement, suggests that the issues may extend beyond metrics, potentially reflecting broader ecosystem challenges. Investor interest in meme coins and utility tokens could be dwindling, affecting SHIB’s performance.
Community Efforts and Future Prospects
Despite recent setbacks, Shiba Inu maintains a strong community of supporters. The slowdown in Shibarium’s activity might be temporary, as the network has previously shown resilience. Community-driven initiatives, such as increased SHIB burning efforts—which have surged by 428.88% with 60 million tokens burned in the last 24 hours—aim to reduce the circulating supply and potentially bolster SHIB’s price.
SHIB Price Movements and Market Outlook
Currently trading at $0.00001744, SHIB has recently bounced back from its support level of $0.00001710. As the community continues to drive burning strategies and possibly secure whale accumulations, there is potential for a market rebound. However, these efforts must sustain momentum to counteract the declining metrics on Shibarium and to restore investor confidence.
Conclusion
Shiba Inu (SHIB) is facing notable challenges, particularly with declining user engagement on its Shibarium network. While the token’s recent performance has been lackluster compared to peers like Dogecoin (DOGE), continuous community efforts and increased burning activities could spark a turnaround. Investors should monitor these trends closely for a clearer outlook on SHIB’s market trajectory.
