- The price of Shiba Inu has declined by about 26% in the last 30 days, resulting in a decline in its market capitalization
- The burn rate for the Shiba Inu tokens has been decreased by over 90% every week which is not good for the price of this crypto coin.
- Smaller transactional volume and whales’ behavior suggested that the public might be losing interest in SHIB.
SHIB is one of the most significant meme coins and ranked the second largest by market capitalization.However, it recently failed to deliver the same level of performance relative to its early success. Its market capitalization is below $8 billion, and its price has dropped by approximately 26% in the last 30 days. This decline has pulled Shiba Inu down to the 16th biggest cryptocurrency, the position down from better positions it used to hold previously.
Another factor that suggests that this downtrend could persist is a steep drop in the SHIB burn rate. The burn rate that is expected to reduce the circulating supply of SHIB and increase its value in the long-term has reduced more than 90% weekly. That is why, in recent periods, not more than 13 million tokens have been sent to the address, which is considerably less than during other burning processes.
The burning mechanism, mainly driven by communities, works on the principle that users transfer SHIB tokens to a wallet from which they cannot be recovered. As a result, the token are eliminated from the circulating supply. Although more than 41% of the initial supply of SHIB has been burned in the past few years, the current circulating supply stands at roughly 583 trillion tokens.
Another troubling factor for SHIB holders is that the net number of new addresses has decreased, and whale activity is diminishing. Such trends suggest that large holders and the crypto space might have reduced enthusiasm for SHIB.
The Ecosystem’s Utilization of Shibarium
To address the challenges in the SHIB ecosystem, Shiba Inu has introduced Shibarium, a layer-two solution that enhances its utility. The Shibarium burn portal is linked to transaction fees, and it uses BONE, Shibarium’s token, to buy SHIB and remove them from circulation.
However, sufficient network traffic and BONE quantity must exist for this burn mechanism to be efficient, which currently stands at a minimum of 100 BONE tokens to burn.Despite Shiba Inu’s community’s active and steady backing, the current information indicates that the meme coin has entered a crucial phase.
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