Is SHIB Price in Trouble as These Key Shiba Inu Metrics Fall?

TL;DR

Shiba Inu (SHIB) has been consolidating lately, with whale activity down 60% and underperforming Shibarium. On the other hand, SHIB’s recording rate has increased by more than 500%, resulting in more than 10 million assets sent to a null address. These indicators point south

Some major meme coins such as Dogecoin (DOGE) and dogwifhat (WIF) have witnessed significant price increases recently. Shiba Inu (SHIB) is also in the green, albeit with less substantial gains. Its value is increasing by 0.5% on a daily basis, it is currently worth approximately $0.00001787 (according to data from CoinGecko).

Interestingly, the minor hit coincides with some important SHIB-related metrics falling in the last 24 hours. The aggregate daily volume (where each transaction exceeds $100,000) is around $10 million, which represents a 60% decrease compared to the figure seen on July 21.

Layer 2 blockchain solution Shibarium has also taken a step back if you look at some of its metrics. The data shows that the protocol’s active accounts have dropped from 667 on July 21 to 107 as of now. For its part, the total number of daily transactions has fallen by almost 85%.

Shibarium was officially launched in August last year and aims to foster the development of the Shiba Inu ecosystem. Its main purposes are to reduce transaction costs, improve scalability and improve speed.

The L2 scaling solution underwent two major updates in the past few months, including the release of a new user interface (UI) update. Its main goal was to enable compatibility with popular self-custodial wallets, such as Coinbase Wallet, MetaMask, and Trust Wallet. For more updates on the topic, be sure to check out our Shibarium News.

The bright side

It’s worth mentioning that not all Shiba Inu-related metrics have gone south on a 24-hour scale. SHIB’s burn rate has increased by more than 500%, resulting in more than 10 million tokens destroyed.

The USD equivalent of storage may be negligible, but continued efforts in this field can positively impact valuation.

The burning mechanism aims to reduce the huge supply of the meme coin, while the subsequent shortage could lead to a price spike (assuming demand stays the same or increases). To date, over 41% of SHIB’s total supply has been sent to a null address, with over 583 trillion tokens in circulation.

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