Categories: Market updates

Shibarium’s Latest Milestone Fails to Stop SHIB’s Nosedive: Details


TL;DR

  • The L2 blockchain solution hit a fresh target, but SHIB’s price plunged by 13% on a daily scale.
  • Falling burn rates and rising exchange netflows hint at increased selling pressure for the meme coin, raising concerns of further downside despite the recent ecosystem milestones.

SHIB Bleeds Heavily Despite the Latest Achievement

The latest data shows that the total number of blocks added to Shiba Inu’s layer-2 scaling solution surpassed the psychological level of 10 million. Not long ago, the total transactions processed on the protocol exceeded one billion. 

Shibarium, launched in August 2023, is specifically designed to foster the development of the meme coin by reducing transaction costs, improving speed, and enhancing scalability. As such, some analysts have previously opined that its further advancement could positively impact SHIB’s valuation.

However, the latest milestone could not prevent the valuation from collapsing in the past several hours. The second-largest meme coin crashed to around $0.00001053, its lowest point in over a year. 

The steep decline echoes the widespread crash in the crypto market, which occurred as a consequence of the global trade war between the USA and pretty much the rest of the world. Bitcoin (BTC) briefly plunged below $75,000, Ethereum (ETH) nosedived under $1,500, and many other well-known altcoins tanked by double digits in the last 24 hours. 

More Pain Ahead?

It remains unclear how the trade war will play out in the near future, but the panic and uncertainty it has caused may have a further negative effect on the cryptocurrency sector.

Shiba Inu’s burning mechanism and the asset’s exchange netflow could also take their toll on the meme coin in the short term. The burn rate has dropped by almost 85% in the past week, resulting in just 180 million tokens being destroyed.

The program’s ultimate goal is to reduce SHIB’s circulating supply and make it more valuable via scarcity. Over the past few years, the amount of tokens sent to a null address has surpassed 410 trillion. However, those remaining in circulation are approximately 584.3 trillion, which is quite a substantial number. 

For its part, SHIB’s exchange netflow has been positive on most days during the past week, suggesting a shift from self-custody toward centralized platforms. This could result in increased selling pressure. 

SPECIAL OFFER (Sponsored)

Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!



Source link

CryptoCanada

Share
Published by
CryptoCanada

Recent Posts

What is a DeFi Wallet and How It Works

DeFi Wallets Unmasked: Your Key to Financial Sovereignty in the Crypto Wild West DeFi wallets…

13 hours ago

Head And Shoulders Pattern Says Bitcoin Price Is Headed Down Toward $95,000

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure The Head…

13 hours ago

Australia Cracks Down Amid Scam Surge

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Australia’s financial…

13 hours ago

Morgan Stanley Says Stock Market Has Priced in Tariff Best-Case Scenario, Warns Stagflation Issue Looming for Magnificent 7 Firms

Chris Toomey, a managing director at Morgan Stanley, thinks the market hasn’t priced in the…

13 hours ago

What Is a Stablecoin? Meaning, Definition, Types & More

Curious about stablecoins and how they fit into the crypto world? This guide breaks down…

2 days ago

$3600 next target for gold?

Last week, Donald Trump’s delay on European tariffs marked the return of the bullish rally…

2 days ago