🌎 Shiba Inu and Bitcoin See Declines Amid Weak Trading Volume

Shiba Inu retreated from its Aug. 9 high of $0.000014 to $0.000032 as the recent rally lost momentum. This pullback coincided with Bitcoin (BTC) dropping from an intraday high of $62,000 to below $60,000.

Volume data indicates that Shiba Inu’s demand has not been robust in recent days. In the spot market, its 24-hour volume stood at $321 million, which is relatively modest for a cryptocurrency with a market cap of $8.2 billion. In comparison, Floki (FLOKI), with a market cap of $1.2 billion, had a 24-hour volume of $320 million, while Pepe and Dogwifhat saw volumes of $1.7 billion and $1 billion, respectively.

The futures market showed a similar trend. According to CoinGlass, Shiba Inu’s open interest dropped to $22 million on Aug. 9, down from a July high of $53 million. At its peak in March, this open interest was over $114 million. Most of Shiba Inu’s futures open interest was concentrated in OKX, one of the largest centralized crypto exchanges. Unlike major cryptocurrencies like Bitcoin, CoinGlass does not display Shiba Inu’s open interest from other significant exchanges such as Binance, Bybit, and Deribit.

Interest in Shiba Inu among traders has waned in recent years, with many turning to newer tokens like Pepe, WIF, Bonk, and Popcat. Consequently, its price remains about 70% below its highest point in March this year and 85% below its all-time high.

Other parts of Shiba Inu’s ecosystem are also struggling. Shibarium, the network’s layer-2 solution, has attracted just $1.2 million in assets, while the total value locked in Shibaswap has decreased to $17.45 million.

Shiba Inu’s performance highlights a significant decline for a cryptocurrency that was once highly popular. At its peak, it had a market cap of over $13 billion. This downturn mirrors that of Dogecoin, which has seen its valuation drop from nearly $90 billion to $15 billion.

On a positive note, there are signs that the SHIB token has formed a falling wedge pattern on the weekly chart, which suggests a potential bullish breakout later this year.