Shiba Inu Sees Weekly 12% Decline As SHIB Rep Urges Caution

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Last updated Mar 05, 2024 | 10:28 AM UTC

Over the past 24 hours, the price of Shiba Inu (SHIB) has taken yet another tumble amid heightened market volatility, shedding its gains since last month in December 2023.

Meanwhile, an opportunistic whale was recently spotted purchasing almost $5m worth of SHIB in spite of concerns.

SHIB in trouble?

As per data available on CoinMarketCap, SHIB has recorded a further loss of 3.51% within the last 24 hours, totaling 12% over the past seven-day period at the time of writing. 

In response, Shiba Inu’s social media marketing lead who goes by the name ‘Lucie’ on Twitter, has provided some thoughts as to why SHIB is taking such a hit and warned the community on the “rollercoaster” that is cryptocurrency investing.

The rationale behind SHIB’s downturn is a reasonable one as the apprehension surrounding the approval of a Bitcoin Spot Exchange-Traded Fund (ETF) from the US Securities and Exchange Commission (SEC). 

That said, these conditions have failed to deter further investment in the memecoin. Crypto analysis platform, Lookonchain, spotted a fresh whale looking to capitalize on the recent dip and purchased a whopping 546.34 billion SHIB tokens from Binance, worth almost $5m at the time. 

Shibarium metrics

As BTC continues to struggle against the $45k resistance levels, there remains a downward pressure on the overall market. SHIB has had a rather dull year and the prospect of token burns kept holders hopeful of some price increases.

Notably, the project was planning to burn 9.25 trillion SHIB per month, which seems incredibly unlikely given they’ve burned just around 200 million tokens in the past week.

However, the token burn rate is based on Shiba Inu’s ecosystem activity. Looking at some of the fundamentals on Shiba Inu’s layer-2 network, Shibarium, the decline in SHIB can also be attributed to some core issues within the SHIB ecosystem.

Ecosystem activity is dwindling. Furthermore, the number of daily transactions on the network has declined by almost 50% from a daily average of around 8 million in December 2023 to just four million today.
 

Written by

Eddie is a seasoned crypto writer and Bitcoin maximalist.