Recently, Shiba Inu (SHIB) experienced a significant surge in price, with a nearly 20% jump in just two weeks. However, this rally was short-lived as the price dropped by 4.5% in the past 24 hours, now sitting at around $0.00001868 according to CoinGecko’s data.
The decline in SHIB’s price was accompanied by a plunge in essential metrics related to Shibarium’s ecosystem. Active accounts on the network dropped from 631 to 209 in just one day, signaling a loss of interest or activity within the community. New daily transactions and blocks processed on the protocol also saw a decrease, highlighting potential concerns about the platform’s usage and adoption.
Shibarium, which went live in August last year, aimed to enhance the development of Shiba Inu’s ecosystem by improving speed, scalability, and reducing transaction costs. Despite reaching various milestones in recent months, its progress is crucial for SHIB’s price potential. Upgrades like a new user interface (UI) update were introduced to support compatibility with popular self-custody wallets like MetaMask, Coinbase Wallet, and Trust Wallet, enhancing accessibility and user experience.
The broader meme coin market also experienced declines, with major coins like Dogecoin (DOGE), Pepe (PEPE), Bonk Inu (BONK), and Floki Inu (FLOKI) all in the red. This overall decline in market capitalization may have contributed to SHIB’s recent price drop. However, some metrics suggest a possible resurgence for Shiba Inu in the near future.
Despite the recent price decline, Shiba Inu could be poisedWIF WIF resetting for a potential resurgence. CryptoQuant data indicates that SHIB exchange netflow has been negative, shifting towards self-custody methods from centralized platforms. This shift is generally seen as bullish, as it reduces immediate selling pressure and could pave the way for a price recovery.
Shiba Inu’s recent price surge followed by a decline highlights the volatility and potential of meme coins like SHIB. While Shibarium’s upgrades and milestones are essential for its ecosystem development, external factors in the meme coin market can influence SHIB’s price trajectory. Stay tuned for further updates to see if Shiba Inu can bounce back from its recent setback.