Challenges mount for Shiba Inu as it faces a steep decline in activity on its Shibarium blockchain and a significant drop in token prices.
A Turbulent Time for Shibarium
The Shibarium blockchain, intended to bolster the use of SHIB, is facing a storm. According to ShibariumScan, daily transaction volume has plummeted from 4.77 million to 52,410 in just a week. This slowdown happens in a gloomy global outlook for the crypto market where even Bitcoin struggles to maintain its peaks. These trends raise concerns about Shibarium's growth sustainability.
Shiba Inu Prices: Key Support Levels
Shiba Inu is losing ground, with a 23.9% drop in price over the past month and a 2.24% decline in 24 hours. Analyst Ali Martinez warns of a lost key support level and the importance of the next thresholds — $0.000011 and $0.000008. The decline in transactions on Shibarium also affects SHIB burn mechanisms, further slowing its scarcity and potential price increase.
Crypto Market Penalizes Memecoins
Shiba Inu is not alone in its struggles; many memecoins are facing tough times. The market, dominated by Bitcoin and Ethereum, makes more speculative assets vulnerable during corrections. With Bitcoin stuck below $100,000, the entire sector feels paralyzed. Limited growth opportunities and lack of a strong catalyst make it challenging to reignite interest in SHIB.
January was a disastrous month for Shiba Inu, and February does not promise to be any brighter. Significant community effort is needed to revive the project and overcome the existing challenges.
