Shiba Inu price may suffer as Shibarium transactions plunge

Shiba Inu (SHIB) Faces Setback 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.

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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.