The price of Shiba Inu coin has plummeted more than 35% from its peak in December, and there’s a possibility it could drop even lower due to decreasing burn rates and fee reductions for Shibarium.
On January 6, the price of Shiba Inu (SHIB) dipped down to approximately 0.00002150 USD, following a similar trend seen in other well-known meme coins such as Dogecoin (DOGE), Pepe (PEPE), and Fartcoin.
As per Shibburn’s data, the rate at which SHIB tokens are being destroyed has been consistently decreasing, potentially leading to less favorable short-term outcomes for the token. In the last 24 hours alone, over 8.73 million SHIB tokens were eliminated, representing a significant decrease of approximately 71% compared to the day before.
It’s quite possible that the substantial decrease is due to the subpar functioning of the Shibarium system. Statistics from ShibariumStats reveal that the number of active accounts on this network has dropped drastically to around 1,250, which is surprisingly low given its widespread reputation.
To add, the typical transaction fee for Shibarium now stands at 0.00023 BONE, marking a decrease from its high in December of 0.00045. Consequently, the total BONE used for gas fees has fallen to approximately 1,715 BONE, which is roughly equivalent to $771.
As a researcher, I find it essential to emphasize the significant impact of Shibarium’s performance on the value of SHIB. The network plays an instrumental role in facilitating token burns, which are integral to the price dynamics of SHIB. To elaborate, fees generated from BONE transactions within Shibarium are converted into SHIB and subsequently destroyed, thereby decreasing the total supply of tokens available in circulation, a process that can potentially increase the token’s value over time due to reduced supply and increased demand.
Currently, information from Nansen indicates a trend among savvy investors (smart money) lessening their involvement with SHIB. The number of smart money holders for SHIB has dropped significantly, now standing at 25 compared to around 40 in November. This decrease might be attributed to Shiba Inu’s relatively poor performance compared to other meme coins, leading investors to explore alternative options such as Fartcoin and ai16z.
Shiba Inu coin price could plunge some more
According to the day-to-day graph, it appears that the Shiba Inu coin (SHIB) may experience additional price drops. The value has dropped significantly from its peak of $0.000033 in November, currently standing at $0.00002150.
The cryptocurrency Shiba Inu (SHIB) has dipped below both its 50-day and 100-day moving averages. What stands out more is that it’s developing a bearish flag chart pattern. This pattern typically unfolds with an initial steep decline, followed by a period of consolidation within a rectangle shape. Historically, this pattern often signals a substantial bearish breakout. If this trend continues for SHIB, there’s potential for a drop to the next support level at $0.00001082, which represents a 50% decrease from its current price levels.
Looking at a positive perspective, it seems SHIB might be shaping up as a ‘cup-and-handle’ pattern. If this bullish formation holds true, the recent dip may be considered part of the ‘handle’. In such a case, SHIB could potentially revisit the upper limit of the ‘cup’ before experiencing additional growth.
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2025-01-08 17:16