Shiba Inu Coin Price Decline

Shiba Inu coin, one of the most popular memecoins, has continued to experience a price downturn. The coin was trading for $0.00001517 at the time of writing.

Unfortunately, the situation worsens as multiple data points predict sustained negative growth ahead. Interestingly, this situation is shocking as past success has given the community hope.

However, the memecoin is now struggling, with key metrics indicating a decline in momentum. As the community seeks to understand the reasons behind the Shiba Inu coin selloff, here are some insights:

The Slump in Shibarium Transaction Count

One noticeable trend for SHIB is the significant fall in transactions on Shibarium, its layer-2 blockchain network.

According to data, the memecoin’s daily transactions have dropped from over 4.5 million last week to under 90,970 as of February 18.

This massive drop reveals a big decline in user engagement.

For context, Shibarium was introduced to enhance SHIB’s scalability and reduce transaction costs. However, its recent slowdown raises questions about the future of the network.

With 9,536,658 blocks processed and an average block time of 5.0 seconds, the network seems to be failing in making a positive impact. This situation has made Shiba Inu coin investors worried about the future.

It is worth mentioning that if the network usage continues to decline, it may negatively affect SHIB moving forward, as low transaction volumes can signify reduced investor confidence.

Shiba Inu Coin Burn Rate Collapses as Bearish Sentiment Derails Community

The Shiba Inu burn mechanism, designed to limit the token’s circulating supply and create scarcity, has also faced a downturn.

For instance, over the past 24 hours, merely 16,122,637 SHIB tokens were taken out of circulation. This represents a 23.7% drop in the burn rate, per data from Shibburn.

Typically, a higher burn rate has historically bolstered SHIB holders’ hope, as a decrease in supply tends to enhance scarcity and could support Shiba Inu coin growth.

However, the recent decline indicates a slowdown in community-driven efforts aimed at achieving this scarcity.

There are currently 584,297,402,904,694 SHIB still in circulation out of a total supply of 589,255,503,464,882 SHIB. Shiba Inu coin has a maximum total supply of 999,982,339,482,145 SHIB, excluding 4,958,100,560,187 SHIB that are currently staked (xSHIB), which further complicates liquidity dynamics.

Broader FUD in the Memecoin Segment: LIBRA Effect

Another significant factor contributing to Shiba Inu’s decline is the rise and fall of the LIBRA memecoin. Although unrelated, LIBRA’s poor outlook is affecting other volatile memecoins.

LIBRA surged after Argentina’s President, Javier Milei, promoted it in a now-deleted X post. His endorsement sparked a rally, pushing LIBRA’s market cap to $4.4 billion.

However, the token crashed by 95% just hours later, erasing the $4 billion valuation.

A similar trajectory occurred with the TRUMP memecoin, which ballooned to a $75 billion market cap before falling sharply. The market is feeling the consequences of LIBRA’s downfall.

Many are pondering whether Shiba Inu is dead or still worth monitoring. While opinions differ, some investors believe the memecoin could recover once market sentiment shifts.

However, the current surroundings remain uncertain, and investors can only watch market trends to anticipate what might come next.