Shiba Inu (SHIB) Price Crashes 7% Daily But There’s More to the Story

TL;DR

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

The Indicators’ Resurgence

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 almost 50 million tokens sent to a null address. The USD equivalent of the stash might be insignificant, but continuous efforts in that field can have a positive effect on the price. 

Data shows over 41% of SHIB’s total supply has been destroyed. Reducing the circulating supply leads to scarcity, which could push the meme coin’s value up (assuming demand stays the same or rises).

Shiba Inu whales have also been quite active as of late. According to IntoTheBlock, aggregated daily volume (where each transaction exceeds $100,000) neared $900 million, representing a whopping 1,800% increase compared to the figure observed on July 18.

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

The layer-2 scaling solution saw the light of day less than a year ago, aimed at fostering the development of Shiba Inu by reducing transaction costs, improving speed, and enhancing scalability. For more updates on the matter, make sure to check out our Shibarium news.

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

The Success in the Last Year

Shiba Inu’s valuation might have declined lately, but it remains well in the green on a weekly scale. Additionally, the price is up a staggering 125% on a yearly basis, which has benefited numerous investors.

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

Some analysts believe the price of the asset is yet to reach new dimensions. Earlier this year, the X user Rekt Capital predicted that the valuation might explode by triple digits should it surpass the critical resistance level of $0.00002741. Recall that SHIB briefly conquered the depicted level at the end of May.

The post Shiba Inu (SHIB) Price Crashes 7% Daily But There’s More to the Story appeared first on CryptoPotato.