The price of Shiba Inu (SHIB) is falling 7% every day, but there is more to the story

TL;DR

Shiba Inu saw a 450% increase in its burn rate and a significant increase in whale activity with daily transaction volumes close to $900 million. Despite the recent correction, SHIB’s price is up 125% over the past year, with 52% of holders in profit. The resurgence of indicators

Despite experiencing a daily price correction of around 7%, Shiba Inu witnessed the revival of some important metrics related to its ecosystem.

The burn rate, for example, has skyrocketed by 450% in the past 24 hours, resulting in nearly 50 million tokens being sent to a null address. The USD equivalent of storage may be insignificant, but continued efforts in this field can have a positive effect on the price.

The data shows that more than 41% of the total supply of SHIB has been destroyed. The reduction in circulating supply leads to scarcity, which could increase the value of the meme coin (assuming demand stays the same or increases).

The Shiba Inu whales have also been quite active lately. According to IntoTheBlock, the aggregate daily volume (where each transaction exceeds $100,000) approached $900 million, representing an increase of 1,800% compared to the figure seen on July 18.

Some Shibarium metrics, including active accounts, new transactions and verified contract growth, have also headed north in recent days.

The Layer 2 scaling solution saw the light of day less than a year ago, with the aim of fostering Shiba Inu development by reducing transaction costs, improving speed and improving scalability. For more updates on the topic, be sure to check out our Shibarium News.

It will be interesting to see if a rally in SHIB prices will follow the resurgence of the aforementioned bullish indicators in the near future.

The success of the last year

Shiba Inu’s rating may have dipped recently, but it remains well in the green on a weekly basis. In addition, the price increases by 125% annually, which has benefited many investors.

Currently, 52% of SHIB holders are sitting on paper profits, while 46% are in the red. This is an impressive comeback compared to the statistics recorded in September 2023. At that time, almost 90% of Shiba Inu investors were underwater.

Some analysts believe that the price of the asset has yet to reach new dimensions. Earlier this year, X user Rekt Capital predicted that the valuation could explode by triple digits if it breaks the critical resistance level of $0.00002741. Remember that SHIB briefly conquered the level represented at the end of May.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!