As a seasoned researcher with extensive experience in the cryptocurrency market, I have seen my fair share of price swings and exchange hiccups. Today’s sudden 7% plunge in SHIB‘s value was disconcerting, but not entirely unexpected given the volatile nature of this asset class. However, the cause behind today’s decline holds a special significance for me due to my past experiences.
Earlier today, the SHIB price experienced a significant drop, down by approximately 7%. However, it has partially recovered some of those losses. Nevertheless, apprehension lingers due to the overall downturn in the cryptocurrency market.
The Main Reason Behind Shiba Inu’s Decline Today
As a seasoned cryptocurrency investor and trader with over a decade of experience in this dynamic market, I can’t help but feel dismayed by today’s unfortunate news from WazirX, India’s premier cryptocurrency exchange. The report that one of their multisig wallets had been breached is a stark reminder of the risks inherent in our industry. With over $230 million worth of assets stolen, this incident underscores the importance of robust security measures and best practices for safeguarding digital assets. It’s a sobering moment for all investors and traders, as we continue to navigate the complex and ever-evolving world of cryptocurrencies.
One multisig wallet under our management, which utilized Liminal’s digital asset custody and wallet infrastructure since February 2023, experienced a cyber attack resulting in over $230 million in funds being compromised.
Approximately $100 million worth of SHIB tokens contributed to the recent decline in value from earlier today.
Due to the current situation, coins such as SHIB, BTC, and USDT (stablecoin) on WazirX experienced significant price discrepancies versus their international and local market values. This disparity indicates potential liquidity issues and heightened selling pressure.
What’s Next for the SHIB Price?
According to a recent report by CryptoPotato, while the cryptocurrency prices took a downturn today, certain significant indicators showed an unexpected uptick instead.
The burn rate experienced a significant surge of 450%, primarily due to heightened volatility. Consequently, an increased number of SHIB tokens have been removed from circulation. This development is advantageous for the surviving coins as it boosts their pricing value.
Currently, large investors in Shiba Inu, referred to as “whales,” are actively making significant purchases. This is evident in the surge of daily transactions valued over $100,000, which reached a staggering $900 million as reported by IntoTheBlock. Such transactions represent a remarkable 1800% rise compared to previous levels.
The statistics related to Shibarium, Ethereum‘s layer-2 scaling solution by Shiba Inu, are similarly increasing.
Despite the chaos brought about by the WazirX incident, Shiba Inu remains unfazed in essence. Keep an eye on our Shibarium news for further developments.
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2024-07-19 14:18