Shiba Inu’s price has experienced a significant drop from its peak earlier this year, and Shibarium’s current performance suggests that further declines could be ahead.
Summary
Shiba Inu’s price may face additional losses as the total value locked in Shibarium continues to decline, alongside a decrease in active users. Technical analysis indicates the price could dip to $0.00000069.
At present, Shiba Inu is trading around the key level of $0.00010, significantly lower than its high of $0.00001765 earlier this year and its peak of $0.0000334 last November. This downtrend mirrors the performance of other prominent meme coins, such as Pepe and coins on the Ethereum and Solana blockchains. For example, the market cap of Solana meme coins has fallen from $22 billion in January to $7 billion today.
A major factor behind this decline is the underperformance of Shibarium, a layer-2 network designed to increase Shiba Inu’s utility and accelerate token burns. Shibarium uses the BONE token for transactions, with fees being converted into SHIB and burned to reduce inflation.
However, recent data shows that Shibarium has not been able to gain significant market share within the layer-2 space. Its total value locked has fallen to under $1 million, mainly following the ShibaSwap hack. The number of active users has also dropped significantly, with only 243 active accounts on October 22. Additionally, only two new accounts were registered on that day, and the transaction volume fell to just 2,300.
As a result, Shibarium is generating minimal revenue, with only 115 transaction fees collected on October 22, amounting to just $11.
Shiba Inu Price Technical Analysis
Looking at the daily chart, Shiba Inu has been in a downtrend over the past few days. It remains below the crucial support level of $0.00001163, which was its lowest point in August and September. Additionally, the price is below both the 50-day and 200-day Exponential Moving Averages, with the Relative Strength Index continuing to decline.
This technical analysis suggests that Shiba Inu could continue its downward trend, with bears targeting the year’s low of $0.000006957. However, if the price rises above the key resistance level of $0.00001163, the bearish outlook would no longer apply.
