- Shibarium’s recent activity boost did not translate into new user growth, negatively affecting the Shiba Inu ecosystem.
- Despite the declining sentiment, SHIB’s network growth and token burning hint at the potential for price recovery.
- Shiba Inu sees a 1.51% increase in 24 hours, signaling a bullish market turn with its price recovery above the $0.000009600 mark.
Shibarium, the layer-2 ecosystem designed to scale the Shiba Inu network, recently experienced a notable surge in activity. However, this upswing failed to captivate new users, leading to a concerning trend for both the platform and SHIB token prices. The lack of new participants signals a possible decline in the ecosystem’s expanding popularity, crucial for sustaining liquidity and interest in Shiba Inu’s offerings.
This trend has raised concerns within the Shiba Inu community, as the influx of new users is crucial for maintaining liquidity and ensuring the network’s long-term viability. A stagnant or declining user base can lead to decreased demand for SHIB tokens, potentially impacting their market value negatively. Despite this, SHIB’s presence on social media platforms remains robust, signaling a still-engaged community despite the current challenges.
Moreover, weighted sentiment analysis indicates that negative perceptions have started to outweigh positive ones among commentators. This shift in sentiment is significant as meme coins, like SHIB, often rely heavily on community enthusiasm and social media momentum to drive value.
On a positive note, SHIB’s network growth metric has shown signs of resilience, increasing the number of new addresses holding the token. This suggests that while attracting new users to Shibarium may be challenging, the core SHIB token is still managing to pique the interest of new investors. Additionally, the velocity of SHIB transactions has increased, indicating a higher trading frequency among the existing community.
An interesting development in the Shiba Inu ecosystem is the strategic burning of SHIB tokens. Over the past 24 hours, 2 million SHIB tokens were removed from circulation. This deliberate reduction of supply, if coupled with sustained or increased demand, could counterbalance the negative price pressures and create a deflationary effect on the token’s value.
As of this writing, Shiba Inu is on the price recovery track as market dynamics turn bullish. SHIB has climbed above the $0.000009600 level after a bullish movement. Currently, SHIB is trading at $0.000009625, up by 1.51% in the past 24 hours.
