🌎 Shiba Inu’s Price Falls Amid Declining Burn Rate

Shiba Inu’s Volatility Persists Amid Falling Burn Rate and Shibarium Fees

Shiba Inu (SHIB) has experienced significant volatility, with its burn rate and Shibarium transaction fees continuing to decline. As of the latest check, the Ethereum meme coin had retreated to $0.000022, representing a 33% drop from its highest level this month.

Causes of the Decline

The primary reason behind Shiba Inu’s decline is the ongoing softness and falling volumes in the cryptocurrency industry. Additionally, Shiba Inu’s fundamentals have deteriorated in recent days. The growth of Shibarium’s network has slowed, with the number of new accounts on Friday being just 44, significantly lower than the 3,400 recorded on December 4.

According to Shibarium Scan, the cumulative number of accounts has grown to 222,000, while active accounts have fallen to less than 3,000. This decline in network activity is mirrored in the broader cryptocurrency market, with trading volume down by 64% in the past week compared to the previous week.

Shibarium’s Performance

Shibarium’s average transaction fees have continued to fall after peaking at 0.0004 earlier this month. The total value locked has also dropped to $3.55 million from over $6 million on December 7. These metrics are crucial for Shiba Inu, as Shibarium is its layer-2 network, and its success is closely tied to the coin’s performance.

The decline in transaction fees has also impacted Shiba Inu’s burn rate, which crashed by over 98% in the last 24 hours to 507,123 SHIB. This burn has brought Shiba Inu’s circulating supply to 584 trillion tokens, significantly lower than its total supply of over 999 trillion.

Technical Analysis

The daily chart shows that the SHIB price has dropped sharply after peaking at $0.000033 in December. It has fallen and moved slightly below the 50-day moving average. A bearish pennant chart pattern is forming, which often leads to further downside.

However, Shiba Inu remains above the ascending trendline that connects the lowest swings since August. A drop below this support level will be a sign that bears have prevailed, potentially leading to further downside to $0.00001590, its lowest level on October 25.

Key points to consider:

* Shiba Inu’s burn rate has declined significantly, impacting its circulating supply.
* Shibarium’s transaction fees and total value locked have also fallen.
* The coin’s technical analysis suggests a potential bearish trend.
* Support levels are crucial in determining the coin’s future direction.