SHIB’s Price Tumbles Over 25% – What’s Behind It?
Shiba Inu (SHIB) has taken a hit. Over the past month, its price has dropped more than 25%, now trading around $0.00001543. Several factors are fueling this decline.
1. Shibarium Activity Takes a Nosedive
Shibarium, SHIB’s layer-2 solution, plays a vital role in the ecosystem. But activity on the network has plummeted. Daily transactions fell from over 4.5 million last week to under 100,000 by February 17. This sharp drop signals waning interest, which could drag the price further down.
2. SHIB Burn Rate Collapses
Burning tokens helps reduce SHIB’s supply, potentially boosting its value. However, the burn rate has plunged by 95% in the past 24 hours. Only 1.7 million tokens were burned—a massive decline from previous figures. With fewer tokens being removed from circulation, price appreciation becomes harder.
3. Meme Coin Market Weakens
It’s not just SHIB facing headwinds. The entire meme coin market is struggling. Total market capitalization slipped 5% in just one day, dropping below $75 billion. Major meme coins like Dogecoin (DOGE), Pepe (PEPE), and Floki Inu (FLOKI) have also seen notable losses. When hype fades across the sector, SHIB isn’t spared.
A Silver Lining for SHIB Bulls
Despite the bearish signals, there’s a glimmer of hope. On-chain data from CryptoQuant shows a predominantly negative exchange netflow for SHIB over the past month. What does this mean? Investors are moving their SHIB tokens off exchanges into self-custody wallets. This reduces immediate selling pressure and could pave the way for a short-term price rebound.
Final Thoughts
SHIB’s recent price drop stems from declining Shibarium activity, a collapsed burn rate, and a weak meme coin market. Yet, the shift toward self-custody hints at a potential turnaround. Will SHIB bulls regain control? The coming days should reveal more.
