TL;DR
- Key metrics like increased Shibarium transactions and a rising SHIB burn rate hint at a possible price rally despite recent declines.
- Shiba Inu’s drop reflects a broader meme coin and crypto market correction.
Time for a Rally?
The popular meme coin – Shiba Inu – has seen better days as its price slightly retraced in the past 24 hours, while its market capitalization briefly dropped below $8 billion. Currently, SHIB trades at around $0.00001363, a 14% decline on a two-week scale.
Despite the negative trend, some essential metrics suggest that a price rally might be on the horizon. One example is the resurgence of the layer-2 blockchain solution – Shibarium. Data shows that the protocol processed 6,360 daily transactions on August 14, representing a 60% increase compared to the figure witnessed the day before.
The total number of Shibarium transactions surpassed 418 million, while wallet addresses are inching toward the 2 million mark. This is considered a serious achievement for the network, which saw the light of day less than a year ago.
Shibarium’s main purpose is to foster the development of the Shiba Inu ecosystem by enhancing scalability, lowering transaction costs, and improving speed. According to some industry participants, its further development might positively affect the SHIB price.
For more updates on the ecosystem, make sure to check out our Shibarium news.
Another factor worth observing is Shiba Inu’s burning mechanism. The burn rate has exploded by almost 850% in the past seven days, resulting in over 148 million tokens being destroyed. Continuous efforts in that field will further reduce the tremendous circulating supply of SHIB, making it scarcer and potentially more valuable (should demand increase or remain the same).
The team behind the meme coin has already sent more than 41% of the total supply (around 410 trillion) to a null address.
Overall Meme Coin Decline
The self-proclaimed Dogecoin killer is not the only meme coin in the red today (August 15), with the entire niche bleeding heavily.
Some of the poorest performers from the top 10 club include dogwifhat (WIF) and Mog Coin (MOG), down 7% and 16%, respectively.
Dogecoin (DOGE) and Pepe (PEPE) are among the very few charting minor decreases and standing in the green on a weekly scale. The former is up 3% for that period, currently trading at around $0.10, while the frog-themed token has risen by approximately 2%.
The underperforming meme coin niche coincides with a broader crypto market decline. Bitcoin (BTC) tumbled to around $58,000, whereas Ethereum (ETH) lost the $2,700 resistance level.
