Shiba Inu’s Shibarium Suffers Crash In Major Metric, Is SHIB Price At Risk?

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Shiba Inu’s layer-2 network, Shibarium, has suffered a significant decline in its daily transaction metric, providing a bearish outlook for the top meme coin. This comes as the SHIB price looks to stage a rebound alongside the broader crypto market.   Shiba Inu’s Shibarium Suffers Crash In Daily Transactions

Shibariumscan datashows that daily transactions on Shiba Inu’s layer-2 network crashed from just over 4 million on August 23 to 1.09 million on August 24. The crash further extended on August 25 as the network recorded 624,140 transactions on the day, which represented a 2-month low for the layer-2 network.  Related Reading Shiba Inu’s Shibarium Suffers Crash In Major Metric, Is SHIB Price At Risk? 8 hours ago

Meanwhile, Shiba Inu’s Shibarium recorded 1.76 million transactions on August 26, which is still significantly below the average of 4 million daily transactions it has maintained for some time. This development is typically bearish for the SHIB price, as a decrease in the network’s daily transactions leads to fewer token burns. 

The Shiba Inu team deploys some of the fees earned on Shibarium for SHIB burns, which helps reduce the token’s circulating supply and could serve as a catalyst for higher prices as demand increases. Notably, Shibburn datashows that the burn rate is down over 87% in the last seven days, with 8.8 million tokens burned during this period. 

However, a positive is that the Shiba Inu burns increased over 500% in the last 24 hours, with 1 million tokens burned during this period. This trend might not be sustainable if the daily transactions on Shibariumcontinue to drop. Meanwhile, other major metrics on the layer-2 network are also on a downtrend at the moment. This includes the number of active and new accounts, which highlight the network’s growth over a period of time.  Bullish Case For The SHIB Price

Amid the drop in these Shiba Inu’s Shibarium metrics, crypto analyst Javon Markshas made a bullish case for the SHIB price. In an X post, he stated that the structure of SHIB’s Inverse Head and Shoulders pattern remains intact and is currently in the final shoulder area of it. Based on this, he declared that the meme coin might be on the brink of a substantial surge.  Related Reading Shiba Inu Head And Shoulders Pattern Signals 540% Upshoot To New All-Time Highs 2 days ago

If the breakout occurs, Marks claimed that the target is over 540% away at $0.000081, which could pave the way into new all-time highs (ATHs) for Shiba Inu. The SHIB price’s current ATHis $0.00008845, which it reached in October 2021. Meanwhile, fundamentals like the Shib Alpha Layer may help contribute to any potential surge in the SHIB price.  Source: Chart from Javon Marks

At the time of writing, the Shiba Inu price is trading at around $0.00001253, up over 2% in the last 24 hours, according to datafrom CoinMarketCap. SHIB trading at $0.000012 on the 1D chart | Source: SHIBUSDT on Tradingview.com Featured image from Getty Images, chart from Tradingview.com