Shiba Inu Drops 4.6% in 24 Hours, 54.9% in Year Despite Shibarium Milestone

Shiba Inu, a highly popular meme token, is currently experiencing a strong bearish trend, with price indicators recording losses across all time frames. The token's value is at risk of losing an additional zero if the current downward trend persists. Despite Shibarium, SHIB’s layer-2 solution, reaching the milestone of 1 billion transactions recently, the token’s price has not responded positively to this achievement.

According to current data, SHIB has decreased by 4.6% in the past 24 hours, 14.7% over seven days, and a substantial 54.9% over the past year. The current market conditions are challenging for the majority of SHIB investors. Based on on-chain analytics, 62% of SHIB investors are currently at a loss, while only 34% are in profit and 4% are breaking even. SHIB has fallen 85.9% from its all-time high of $0.00008616 on October 28, 2021, leaving many investors who bought during the 2021 bull run underwater on their holdings.

The token reflects a high ownership concentration, with 74% of SHIB owned by major holders. This concentration may be contributing to price volatility, as the actions of large holders tend to have disproportionate impacts on the market. Major volume trading in the last week has hit $184.02 million, indicating sustained activity even as the price declines.

Despite Shiba Inu’s layer-2 scaling solution, Shibarium, recently achieving a major milestone of 1 billion transactions, this accomplishment has not translated into positive price action for SHIB. This disconnect between ecosystem development and token price shows the current market’s focus on overall trends rather than project-specific achievements. Shibarium is a key component of the Shiba Inu ecosystem that focuses on reducing transaction fees, increasing processing speed, and enabling more advanced applications within the SHIB ecosystem. The continued negative price action despite reaching such a substantial transaction milestone raises questions about what catalysts might eventually reverse SHIB’s downward trend.

The Shiba Inu community has historically highlighted token burns as one possible method of driving scarcity and price support. Recent burn behavior has been spotty and inadequate to have any real effect on the enormous Shiba Inu token supply. After a recent spike in burn rate of more than 12,000%, the last 24 hours have seen the burn rate decline by 60%. During this period, only 37.6 million SHIB tokens were removed from circulation. Token burns continue to be a mainstay narrative among the SHIB community. However, the volume of burning has to rise in order to have an effect on the token’s supply that can be measured. The 17.88% hike in trading volume in the last 24 hours to $311.14 million gives some indications of market action. This potentially could be being driven by the larger holders stockpiling at lower prices.