Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Shiba Inu Crisis: Shibarium Loses Investor Confidence

Shiba Inu Crisis: Shibarium Loses Investor Confidence

EthnewsEthnews2024/10/10 07:57
By:By AnnJoy Makena
  • Shiba Inu is experiencing a significant decrease in activity on its Layer-2 network, Shibarium, leading to a loss of investor interest.
  • New meme coins like SPX6900 are experiencing explosive growth rates, drawing capital and attention away from Shiba Inu.

The cryptocurrency market is known for its high volatility and dynamic nature. Currently, Shiba Inu , once a star among meme coins, is facing serious challenges. The currency, which had gained significant value through viral trends and investor enthusiasm, now finds itself in a period of stagnation. As of October 9, the price was around $0.00001718, marking a 21% decrease from the monthly high.

This trend is particularly noticeable in the context of newly emerging meme coins, which are recording spectacular growth rates. For example, the coin SPX6900 has increased by more than 300% within a week, leading to a substantial shift in investment flows. Crypto investors are constantly on the lookout for the next big opportunity, which further increases the pressure on Shiba Inu.

Shibarium: Lack of Momentum Threatens Shiba Inu

A crucial aspect of Shiba Inu’s current predicament is Shibarium , its own Layer-2 network. This was initially intended to enhance scalability and transaction speed, thereby increasing the utility and value of Shiba Inu. Instead, ShibariumScan reveals alarming signs: the number of active accounts has fallen below 500, and the number of new accounts created on October 8 was only 33.

This lack of network activity leads to a decrease in transaction fees, which have fallen from 0.062 BONE to an average of 0.005 BONE, a decline of 91%. While lower fees might be seen as a positive development, in this case, they merely reflect dwindling interest and reduced use of the network. Another negative effect is the reduction in the SHIB burning process, a mechanism to decrease the circulating supply and support the token value.

The market for Shiba Inu futures is also not showing positive signs. Open positions have decreased from $70 million to $44 million, indicating low expectations for future price increases.

The Future of Shiba Inu and Shibarium

It remains to be seen how Shiba Inu and Shibarium will hold up in a crypto landscape increasingly dominated by newer, more attractive meme coins. A realignment and re-winning of investor trust are crucial to avoid sliding into irrelevance. Without significant improvements, Shiba Inu and Shibarium could become relics of a past era, overtaken by more innovative and dynamic newcomers in the crypto market.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

What it’s going to take to hit $100K

MicroStrategy announced that it purchased 55,500 bitcoin last week, but that didn’t quite push BTC over the 6-figure edge

Blockworks2024/11/25 22:55

Why analysts are upping price targets for MSTR and COIN

MSTR shares hovered around $402 at 2 pm ET Monday — down 4.7% on the day but up 70% from a month ago

Blockworks2024/11/25 22:55