As a seasoned researcher with years of experience tracking digital asset trends, I find myself scrutinizing the current state of Shiba Inu (SHIB) with a mix of concern and intrigue. The recent price drop and bearish on-chain metrics have set off alarm bells, suggesting that the bulls may face further turbulence in the near future.
TL;DR
- Shiba Inu’s price dropped after a brief surge, with some metrics indicating further bearish trends.
- The token’s burn rate has sharply decreased, while over half of its investors are currently sitting on paper losses.
The Overall Bearish Conditions
Last week, Shiba Inu’s (SHIB) price saw a small increase, peaking at approximately 0.00001407 USD on September 14. However, this upward trend was brief, and the value has since dropped in the last 24 hours to its current level of around 0.0000133 USD.
The drop in the price of the meme coin coincides with a decrease in certain on-chain indicators, suggesting that buyers could experience more losses in the coming days. As reported by IntoTheBlock, the Daily Net Network Growth (a momentum signal reflecting the true expansion of the token’s network) has decreased by 0.19%.
A massive number of high-value transactions totaling $5.3 million were processed, marking a 76% drop compared to the previous day’s volume, where each transaction surpassed the $100,000 threshold.
To wrap things up, let’s delve into the Shiba Inu token burning mechanism. Over the last day, the burn rate has significantly decreased by an astonishing 96%. This reduction has led to just 227,000 tokens being transferred to a non-existent address.
The purpose of this program is to decrease the vast amount of SHIB coins in circulation, making them less common and possibly increasing their worth over time (provided demand stays strong). Over 410 trillion tokens have been eliminated since the program’s initiation, leaving approximately 583 trillion tokens still in circulation.
Recently, the Shibarium team, responsible for Shiba Inu’s layer-2 scaling solution, introduced a new mechanism called the “Burn Portal.” This mechanism differs from the original one as it utilizes BONE, which is the governance token of the ecosystem. Gas fees within this system are paid using this coin.
A certain amount of the BONE currency is set aside to buy SHIB tokens, which are then transferred to an empty wallet. However, users can only initiate a ‘burn’ (or destroy) these tokens if they possess more than 100 BONE in their account.
SHIB Trails Behind DOGE and PEPE on This Front
It’s not surprising that the struggling Shiba Inu has left its investors in a tough spot financially. According to IntoTheBlock data, about 45% of the investors are currently enjoying paper profits, while a larger group, around 52%, are experiencing losses. Contrast this with March of this year, when SHIB was on a bull run; at that time, a staggering 63% of all SHIB investors were in profit.
Most Dogecoin (DOGE) investors (around 72%) are actually enjoying a profit from their original investments at this time, whereas just a quarter (25%) find themselves in a loss.
Investors in PEPE (Pepe) have an advantageous situation compared to those in SHIB, with 49% currently profiting and 40% experiencing some losses at this point.
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2024-09-16 14:54