Shiba Inu (SHIB), the second-largest meme coin by market capitalization, recently experienced a surge in price, increasing by almost 20% in just two weeks. However, this rally was short-lived as the price dropped by 4.5% in the past 24 hours, currently valued at approximately $0.00001868. This decrease coincided with a significant decline in active Shibarium accounts and daily transactions.
Shibarium’s Decline and Upgrades
Shibarium, a platform designed to enhance Shiba Inu’s ecosystem by improving speed, scalability, and lowering transaction costs, saw a decrease in active accounts and daily transactions. The protocol, which officially launched in August last year, has undergone important upgrades, including a new user interface update to improve accessibility for users with popular self-custody wallets like MetaMask and Trust Wallet.
The broader meme coin market also experienced declines, with many popular meme coins such as Dogecoin, Pepe, Bonk Inu, and Floki Inu showing red numbers. This overall decline in market capitalization could have contributed to SHIB’s recent price drop. However, there is still potential for a resurgence as some metrics indicate a shift from centralized platforms to self-custody methods, which is generally viewed as bullish due to reduced selling pressure.
Despite the recent setbacks, there are speculations that Shiba Inu could soon bounce back from the correction. CryptoQuant data shows that SHIB exchange netflow has been mostly negative in the past week, suggesting a possible turnaround in the near future. The progress of Shibarium and its continued development will play a crucial role in determining SHIB’s potential for price increase.
The fluctuating fate of Shiba Inu (SHIB) reflects the volatile nature of the meme coin market. While recent price drops and declining metrics may raise concerns among investors, there is still optimism for a potential resurgence in the near future. Keeping a close eye on SHIB’s development and market trends will be essential for navigating the ever-changing landscape of meme coins.
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