Did the Shiba Inu price take a hit due to the recent dip in Shibarium’s activity? It seems that the Shiba Inu cryptocurrency, also known as SHIB, experienced a decline in value around the same time Shibarium’s activity decreased. This has led to a shift in sentiment towards Shiba Inu, with a more positive outlook now emerging.
Shiba Inu’s Recent Price Dip
On January 7th, the Shiba Inu price fell to $0.0000090, marking a 5.90% decrease in value within a 24-hour period, as noted by AMBCrypto. This downtrend isn’t new for Shiba Inu, as its price has been underperforming for some time, leading to its ranking being overtaken by Internet Computer (ICP) and Toncoin (TON).
Interestingly, the recent downturn coincided with a decrease in activity on Shibarium, the Layer-two (L2) scaling solution of the Shiba Inu ecosystem. Prior to its launch, there were high hopes that Shibarium would positively influence the Shiba Inu price. However, despite achieving some activity milestones, the anticipated impact on SHIB’s price has not materialized.
Shibarium’s Decreased Activity
Shibarium’s daily transactions dropped to 4 million on January 7th, a significant decline from the 7.52 million recorded in the last days of December 2023. This decrease in transactions suggests a reduction in network activity, which could negatively impact the Shiba Inu price and cast doubt on the token’s viability.
Shiba Inu’s Burn Mechanism
Another factor potentially influencing the Shiba Inu price is the token’s burn mechanism, designed to reduce the circulating supply. By creating scarcity, the value of the remaining tokens could increase. However, the burn rate decreased by 93.70% in the last 24 hours, implying that SHIB’s value might continue to decline unless the number of tokens burned increases.
There has been speculation that the Shiba Inu team plans to increase the number of tokens burned. A member of the Shibarium development team, RagnarShiba, suggested that Shiba Inu aims to burn 9.25 trillion SHIB tokens by the end of January. If this occurs, it could potentially stabilize the Shiba Inu price.
Additionally, data from Santiment revealed a decrease in Shiba Inu’s Social Dominance to 0.387%, indicating a decline in discussions about SHIB. While this might seem negative, it could present a buying opportunity and positively impact the Shiba Inu price.
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