Shiba Inu price may suffer as Shibarium transactions plunge

Shiba Inu is using a double-edged sword right now. Transactions on Shibarium have dropped, with a negative net flow of 3,015%. Moreover, the price of SHIB is down by 3.11% in the last 24 hours, listed at $0.00002397 at the time of writing this article. There is speculation that transactions dropping on Shibarium will have a dark cloud over SHIB’s future.

There are two ways to look at it: first, whales are making a shift amid market volatility by losing some portion of their holdings, and second, there is a rising interest in SHIB, which is leading to transfer or accumulation. Thoughts are strong enough to estimate that whales have sensed a potential danger and are letting go of their holdings or defending them in response to the prevailing market conditions.

The negative net flow certainly makes a strong case for reducing stakes or selling. A good netflow would have demonstrated accumulation or a higher purchase of the token.

Market volatility and the willingness to explore other tokens in the market are largely responsible for this. This is also evident in the fact that a large number of traders are looking beyond Bitcoin (BTC), willing to have some altcoins to their name that have lower risks and a less volatile nature.

The future of SHIB is not as risky as it looks right now. The token has increased by 8.24% in the last 7 days and 2.47% in the last 30 days. SHIB could potentially surpass the milestone of $0.00003 by the end of the year. A more optimistic possibility is that the dog-themed meme coins could surpass the $0.00005 mark before entering 2025.

A recent highlight shows a significant spike in the SHIB burn rate. This has boosted Shiba Inu’s tokenomics and instilled a sense of confidence among holders. A significant rise in the burn rate occurred when a wallet transferred 3.10 million SHIB tokens to a dead wallet through multiple transactions in just 24 hours. In the previous twenty-four hours, another wallet was observed transmitting 1.69 million SHIB tokens to a defunct wallet.

The spike in the burn rate now credits both wallets.

Burning tokens in the supply usually leads to a price rise because the tokens become scarce, and the demand rises automatically. The supply-demand mechanism kicks in to pull the price as high as possible. Despite a decrease in the number of transactions on Shibarium, future SHIB estimates are bullish. Its burn rate has increased by almost 500%, potentially triggering an upswing on the trading board.

The community continues to expect fluctuations for SHIB throughout the year. It will be a while before there is a significant uptrend in its value, evidently backed by the number of transactions on Shibarium. Until then, the token can swing both ways in hopes of moving higher.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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