Shiba Inu Network Activity Plummets 98.5% as Token Price Slumps to $0.00001239

Shiba Inu (SHIB) has seen a significant decline in a key network metric, raising concerns among investors about further downward pressure on the token. The coin’s price currently stands at approximately $0.00001239, marking a sharp decline from the $0.00003086 peak observed in December 2024 [1]. This decline has coincided with a broader market correction, exacerbating SHIB’s performance challenges.

A critical indicator—transaction volume on Shibarium, the layer-2 scaling solution associated with SHIB—has dropped to its lowest level since early June, with only around one million transactions recorded on August 24 [1]. This drop in network activity suggests reduced engagement within the Shiba Inu ecosystem, which could indicate a waning interest among users. Additionally, the burn rate, where SHIB tokens are destroyed with each Shibarium transaction, has risen by only 1.2% in the past 24 hours, destroying approximately 3.7 million tokens with minimal impact on its overall value [1].

The bearish momentum is further supported by recent exchange netflow data, which shows inflows surpassing outflows as investors move SHIB into centralized exchanges [1]. This shift often signals an increased likelihood of selling pressure, as investors may be preparing to offload their holdings amid uncertainty.

However, not all signals point to continued weakness. Some analysts suggest that SHIB remains within a historical accumulation zone, with major price rallies often following such consolidation phases [1]. A prominent X user has set price targets of $0.00005589 and $0.00003296—representing a potential 166% increase from current levels—should the coin break out of its current range [1].

Technical indicators also hint at a potential reversal. SHIB’s Relative Strength Index (RSI) is approaching oversold levels, which historically have preceded rebounds. Readings below 30 typically suggest that an asset is undervalued and may be due for a correction. While the RSI has been declining, its trajectory suggests it is nearing a level where a short-term bounce could occur [1].

Despite these potential signs of resilience, the broader crypto environment remains weak, and SHIB’s performance is particularly vulnerable to shifts in market sentiment. The token’s reliance on speculative demand means that any downturn in investor enthusiasm can amplify its volatility. Furthermore, the rise of alternative meme coins with improved infrastructure and lower fees poses a structural challenge for SHIB [1].

Investors are advised to remain cautious, as the current conditions suggest a period of consolidation rather than immediate recovery. The interplay of network activity, technical indicators, and broader market dynamics will likely determine the token’s path in the coming weeks. For now, the market is closely watching whether SHIB can stabilize or if further declines are on the horizon [1].

Sources:

[1] This Shiba Inu (SHIB) Metric Drops to a Multi-Month Low - Cryptopotato [https://cryptopotato.com/this-shiba-inu-shib-metric-drops-to-a-multi-month-low-more-pain-ahead/](https://cryptopotato.com/this-shiba-inu-shib-metric-drops-to-a-multi-month-low-more-pain-ahead/)

[2] Best Meme Coin To Buy Today: 5 Reasons Why Layer ... - MEXC [https://www.mexc.co/en-IN/news/best-meme-coin-to-buy-today-5-reasons-why-layer-brett-is-on-track-to-smash-pepe-and-shiba-inu/71633](https://www.mexc.co/en-IN/news/best-meme-coin-to-buy-today-5-reasons-why-layer-brett-is-on-track-to-smash-pepe-and-shiba-inu/71633)

[3] Zebec Network (ZBCN) Latest News - BitScreener [https://bitscreener.com/coins/zebec-network/news](https://bitscreener.com/coins/zebec-network/news)