Here’s how many HODLers are underwater

TL;DR

The price of Shiba Inu (SHIB) has dropped significantly, with many investors sitting on paper losses. Shibarium, SHIB’s layer 2 solution, is showing positive signs of growth, hinting at a potential rebound for the meme coin.

SHIB is down

The cryptocurrency market has dropped substantially in the past 24 hours, with numerous leading digital assets in the red. The popular Shiba Inu meme coin is no exception, losing around 3% of its valuation. It is currently worth about $0.00001531 (according to CoinGecko data), while its market cap is around $9 billion.

SHIB Price, Source: CoinGecko

As expected, the correction has negatively affected SHIB investors. According to IntoTheBlock, the percentage of holders underwater (48.1%) has slightly exceeded those sitting on some paper profits (47.7%).

The situation looked much more optimistic in March this year, when the price of SHIB went on an impressive bull run. At the time, almost 65% of meme coin investors were in the green.

Numerous important Shiba Inu metrics have also gone south. The token’s 24-hour trading volume has fallen below $250 million, while daily active addresses have plummeted to around 3,100.

On a positive note, the Layer 2 blockchain solution, Shibarium, has witnessed some resurgence, indicating a potential rebound in SHIB’s price in the near future. The data shows that new accounts and new daily transactions on the protocol have been increasing.

Shibarium was officially launched last summer, with the goal of fostering the development of the Shiba Inu ecosystem. Its main purposes include reducing transaction costs, improving scalability, and improving speed. For more updates on the ecosystem, be sure to check out our Shibarium News.

General meme coin bloodbath

Shiba Inu isn’t the only meme currency that has seen a severe correction lately. The sector’s market capitalization has fallen 5.5% daily to about $47 billion.

Some of the poorer performers include dogwifhat (WIF), Brett (BRETT), Mog Coin (MOG) and Pepe (PEPE). Popcat (POPCAT) and Turbo (TURBO) are among the few to post some gains.

The collapse of the cohort comes as another warning that traders should jump on the bandwagon after conducting proper due diligence and invest only as much as they are willing to lose. For more important tips on the topic, please check out our dedicated video below:

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