Shiba Inu has recently entered a consolidation phase, marked by a significant 60% drop in whale activity and underperformance of its Layer-2 network, Shibarium. Meanwhile, the SHIB burn rate has soared by over 500%, resulting in more than 10 million tokens being sent to a void address. Despite these fluctuations, Dogecoin and other major cryptocurrencies have shown notable price gains recently.
What’s Happening with SHIB?
Despite minor gains, Shiba Inu remains in the green zone. The token’s value has edged up by 0.5% daily, currently trading around $0.00001787, according to CoinGecko. However, significant data related to SHIB reveals a different story. Over the last 24 hours, the total daily volume where each transaction exceeds $100,000 has plunged by approximately 60%, standing at around $10 million as of July 21st.
Details on the Subject
Shibarium, the Layer-2 network supporting Shiba Inu, has also shown signs of decline. Active accounts have dropped from 667 on July 21 to 107 currently, and the daily transaction count has decreased by nearly 85%. Launched last August, Shibarium aims to reduce transaction costs, enhance scalability, and boost speed within the Shiba Inu ecosystem. Recent upgrades include a new user interface compatible with wallets like Coinbase Wallet, MetaMask, and Trust Wallet.
Key Inferences from Recent Trends
Insights:
- Whale activity in Shiba Inu has significantly reduced.
- Shibarium’s active accounts and transactions have drastically decreased.
- The SHIB burn rate has increased dramatically, pointing towards potential price impact due to reduced supply.
Not all data around Shiba Inu is negative. The SHIB burn rate has surged by over 500%, with more than 10 million tokens destroyed. Although this may seem minor in USD terms, consistent burn efforts can positively influence valuation by reducing supply. So far, over 41% of SHIB’s total supply has been burnt, with more than 583 trillion tokens still in circulation.