By AMB Crypto - 3 months ago - Reading Time: 2 minutes
Why SHIB’s current status may have links to Shibarium
SHIB fell to $0.000009 around the same time Shibarium activity dropped. The sentiment toward Shiba Inu has changed for the better.The price of Shiba Inu [SHIB] joined in the widespread market decline on the 7th of January, AMBCrypto observed. At press time, SHIB’s price was $0.0000090. This was after it lost 5.90% of its value in the last 24 hours.
However, Shiba Inu’s troubles have been a long-standing one, especially as it concerns its price action.
This underwhelming state was why it lost its position to Internet Computer [ICP] and Toncoin [TON] earlier. However, it also seems that Shibarium has aided the recent decline.
Participants overlook the L2
For context, Shibarium is the Layer-tw0 (L2) scaling solution of the Shiba Inu ecosystem. Before its launch, there was hype that the L2 would bring favorable tides to the SHIB price.
But that has not been the case, despite recording some milestones in terms of activity.
However, the transactions on Shibarium have reduced over the last few days. According to Shibariumscan, daily transactions fell to 4 million on the 7th of January.
This number was a notable decline from the 7.52 million registered around the last days of December 2023.
Source: Shibariumscan
The decrease in transactions suggests a decline in activity on the network. Also, the fall could affect the SHIB price and pass a vote of no confidence to the token.
SHIB burn plans may change the state
AMBCrypto also assesses the SHIB burn data. The purpose of the Shiba Inu burn mechanism is to reduce the circulating supply. This, in turn, creates scarcity and increases the value of the remaining tokens.
As of this writing, the Burn Rate had decreased by 93.70% in the last 24 hours. This decline suggests that the value of SHIB might keep decreasing. However, if the number of SHIB burned increases, then the token price might stabilize.
Furthermore, there was speculation that the Shiba Inu team had plans to increase the number of tokens burned. This opinion was shared by RagnarShiba— a member of the Shibarium development team.
According to him, Shiba Inu plans to burn 9.25 trillion SHIB tokens by the end of January.
#SHIBARIUM team member Ragnar tweets that 9.25 trillion $SHIB can be burned this month pic.twitter.com/guwhXQwM9Y
— $SHIB BPP (@ShibBPP) January 6, 2024
If this happens, then the price of SHIB might recover. In terms of Social Dominance, Santiment data showed that the metric had decreased to 0.387%. The decrease in Social Dominance implies that conversations around SHIB have reduced.
How much are 1,10,100 SHIBs worth today?
However, the drop could be good for the price action, as it could present a buying opportunity.
A look at the Weighted Sentiment showed the market participants have changed their sentiment toward the token. At press time, the Weighted Sentiment was 0.058. This was a notable increase from what it was on the 7th of January.
Source: Santiment
Original source: AMB Crypto