- SHIB dropped to $0.000009 around the same time Shibarium activity fell.
- Sentiment towards Shiba Inu has changed for the better.
The price of Shiba Inu [SHIB] joined the widespread market decline on January 7, AMBCrypto noted. At the time of writing, SHIB’s price was $0.0000090. This was after it lost 5.90% of its value in the last 24 hours.
However, Shiba Inu’s problems have been going on for a long time, especially when it comes to the price action.
This disappointing condition was the reason why it lost its position to Internet Computer [ICP] and Toncoin [TON] earlier. However, it also appears that Shibarium has promoted the recent decline.
Participants look out over the L2
For context, Shibarium is the Layer-tw0 (L2) scaling solution of the Shiba Inu ecosystem. Before the launch, there was hype that the L2 would positively influence the SHIB price.
But that hasn’t been the case, despite the fact that some have been recorded milestones in terms of activity.
However, transactions on Shibarium have declined in recent days. According to Shibarium scandaily transactions fell to 4 million on January 7.
This number was a notable drop from the 7.52 million recorded around the last days of December 2023.
Source: Shibarium scan
The decrease in the number of transactions indicates a decrease in activity on the network. Also, the drop could affect the SHIB price and trigger a vote of no confidence against the token.
SHIB burn plans may change status
AMBCrypto also reviews SHIB fire data. The purpose of the Shiba Inu combustion mechanism is to reduce the circulating supply. This in turn creates scarcity and increases the value of the remaining tokens.
At the time of writing, the Burn Rate was decreased by 93.70% in the last 24 hours. This decline suggests that SHIB’s value may continue to decline. However, if the number of SHIBs burned increases, the token price may stabilize.
Additionally, there was speculation that the Shiba Inu team had plans to increase the number of tokens burned. This opinion was shared by RagnarShiba, member of the Shibarium development team.
According to him, Shiba Inu plans to burn 9.25 trillion SHIB tokens by the end of January.
#SHIBARIUM team member Ragnar tweets that 9.25 trillion $SHIB can be burned this month ???????? pic.twitter.com/guwhXQwM9Y
— $SHIB BPP (@ShibBPP) January 6, 2024
If this happens, SHIB’s price could recover. In terms of social dominance, data from Santiment showed that the benchmark had fallen to 0.387%. The decline in social dominance implies that conversations around SHIB have diminished.
How much are 1,10,100 SHIBs worth today?
However, the decline could be good for the price action as it could provide a buying opportunity.
A look at the weighted sentiment showed that market participants have changed their sentiment towards the token. At the time of writing, the weighted sentiment was 0.058. This was a notable increase compared to the situation on January 7.
Source: Santiment