For Shiba Inu, the second largest meme coin on the market, the past 50 days have been quite difficult. Alt has lost more than 60% of its price. In the past 24 hours, the asset had its lowest price since October 23, when it traded at $ 0.00002824 in the late hours of December 20.
However, with Bitcoin soaring above $ 48,000, Shiba’s price is up significantly at press time, up nearly 10%. In fact, before the sudden surge, an ETH whale again bought SHIBs worth $ 50,000,000 to feed the SHIB with lunar stories.
So the barking is getting louder?
The price of the coin fell 61.42% against ATH in late October, however there are certain developments in the Shiba Inu ecosystem that have managed to sustain the importance of the coin afloat. Recently, ShibaSwap developer Eric M even gave an update on the progress of Shibarium’s Layer 2 solution Shib and announced that it will be released shortly.
In addition, the SHIBA tokens are burned regularly. This mechanism has the potential, to some extent, to drive asset prices higher in the future. Shiba Inu’s incineration mechanism resulted in a total of 410,299,323,623,191 SHIB tokens or 41.02993% of the supply being burned from the initial shipment of a quarter of a billion.
While all of these are a good attempt at keeping SHIB relevant, dog coins need more than that.
Shiba doesn’t have an animal lover?
In the past few weeks, high-risk, heavily bullish asset classes like Memecoins have seen a decline in price and popularity as the market has become more volatile. Dogecoin, Shiba Inu, Floki Inu, and other Dogekillers were hit as the market’s intent increased to reduce their portfolio risk.
However, with ETH whales buying SHIB and speculation on a listing of Shiba Inu by Robinhood in April 2022, the coin could see some upward trends.
However, WhaleStats reports that most of the whales currently owning the Shiba Inu are buying it at a much higher price than they are today. This causes significant damage to these whales. Also, if you look at the global inbound and outbound amounts for SHIB, you can see that 569.52k addresses or 54.72% of the addresses are funded or making profits at the price of $ 0.000032. Remarkably, 366.23 thousand addresses, or 35.19%, ran out of funds or made losses.
Source: IntoTheBlock
On the other hand, the SHIB ownership statistics are still worrying as there are very few HODL holdings of SHIB. In fact, SHIB reached 1,000,000 owners by the end of November, the rise of HODLer could be key to SHIB’s growth as that group disappeared while cruisers and dealers dominated the position.
Source: IntoTheBlock
On the plus side, however, since the SHIB price is pumping, the past 24 hours of trading activity on Coinbase is 67% purchases and 33% sales. However, SHIB’s low active addresses and network growth still prevent the coin from becoming relevant.
In the short term, however, a retail-backed rally could help SHIB prices rise, despite online indicators showing a weaker network.