Shiba Inu (SHIB), the second-largest meme coin by market capitalization, has experienced a rollercoaster ride in the past two weeks. The price of SHIB surged by almost 20%, only to drop by 4.5% in the last 24 hours. This abrupt decline comes amidst a significant decrease in active Shibarium accounts and daily transactions.
Shibarium, a network designed to enhance the development of Shiba Inu’s ecosystem, has witnessed a decline in essential metrics. The number of active accounts on the network has plummeted from 631 to 209 in just a day. Additionally, new daily transactions and blocks processed on the protocol have also shown a downward trend. These metrics are crucial for the growth and sustainability of SHIB’s ecosystem.
Despite the recent setbacks, Shibarium has achieved several milestones and undergone important upgrades. The network introduced a new user interface update to improve speed, scalability, and transaction costs. This upgrade aims to make SHIB more accessible and compatible with popular self-custody wallets like MetaMask, Coinbase Wallet, and Trust Wallet. The progress and innovation within the ecosystem are seen as key factors for a potential price increase in SHIB.
Market Capitalization Declines
The broader meme coin market has also seen declines, with several popular coins like Dogecoin (DOGE), Pepe (PEPE), and Floki Inu (FLOKI) experiencing losses. The overall market capitalization of meme coins has decreased by nearly 2% in a single day. However, amidst this decline, some metrics suggest a possible resurgence for Shiba Inu.
Potential Resurgence for Shiba Inu
Despite the current price drop, there are indications that Shiba Inu could soon experience a resurgence. According to CryptoQuant, SHIB managers have witnessed predominantly negative netflow in the last week. This shift towards self-custody methods is viewed as a bullish sign, as it reduces immediate selling pressure on the asset.
The recent price movements of Shiba Inu (SHIB) reflect a volatile and dynamic market environment. While the coin has faced challenges in the past 24 hours, the overall trajectory and potential for growth remain optimistic. Investors and enthusiasts alike will be closely monitoring the developments within the Shibarium ecosystem and the broader meme coin market in the coming days.
