Shiba Inu price has been on a strong bearish trend recently, with indicators showing losses in all time frames. The popular meme token is at risk of adding an additional zero to its value if the bear run continues. Despite Shibarium, SHIB’s layer-2, reaching 1 billion transactions, the token’s price hasn’t responded positively to this milestone. Falling SHiba Inu Price Affects Holder Profitability as the token is down 4.6% in the past 24 hours, 14.7% over seven days, and a significant 54.9% over the past year.
The current context for SHIB price seems tough for most investors, with 62% of SHIB investors currently at a loss, while only 34% are in profit, and 4% are breaking even. The token has fallen 85.9% from its all-time high over three years ago, making many investors who bought during the 2021 bull run underwater on their holdings. With 74% of SHIB owned by major holders, price volatility may be attributed to high ownership concentration, as the moves by large holders tend to have a disproportionate impact on the market.
Despite Shibarium achieving a major milestone of 1 billion transactions, the accomplishment has not translated into positive price action for SHIB. This disconnect between ecosystem development and token price reflects the market’s focus on overall trends rather than project-specific achievements. Shibarium focuses on reducing transaction fees, increasing processing speed, and enabling advanced applications within the SHIB ecosystem. The continued negative price action despite reaching a significant transaction milestone raises questions about potential catalysts that could reverse SHIB’s downward trend.
The Shiba Inu community has considered token burns as a method to drive scarcity and price support, but recent burn behavior has not had a significant impact on the token’s supply. Despite a recent spike in burn rate, the last 24 hours saw a 60% decline in burn rate, with only 37.6 million SHIB tokens removed from circulation. Token burns remain a mainstay narrative among the SHIB community, but the volume of burning needs to increase to have a measurable effect on the token’s supply. The recent 17.88% hike in trading volume gives some indications of market action, potentially driven by larger holders stockpiling at lower prices.
In conclusion, Shiba Inu’s price decline has affected holder profitability, with a high ownership concentration contributing to price volatility. Despite Shibarium reaching a significant milestone, it has not reversed the negative price trend for SHIB. Token burns have been discussed as a potential solution, but the volume needs to increase significantly to impact the token’s supply. Overall, the market appears focused on broader trends rather than specific project achievements, leaving investors questioning potential catalysts that could drive a price reversal for Shiba Inu.
