Shiba Inu (SHIB) saw a significant spike in a major metric, which signals a bullish outlook for the second-largest meme coin by market cap. Despite this, Shiba Inu’s price has failed to react positively, which can undoubtedly be a concern for token holders.
Shibarium Sees Increase In Active Accounts
Data from Shibariumscan shows that the number of active accounts on the layer-2 network rose from 1290 on April 27 to 3,839 on April 28, representing over a 144% increase. Such development is bullish for Shiba Inu, considering how the layer-2 network has been integral to the meme coin’s success since it launched last year.
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Shibarium also saw the number of new transactions on the network spike from 4,997 on April 27 to 12,191 on April 28. This is even more bullish for Shiba Inu since the amount of SHIB burns Shibarium carries out depends on the number of transactions it records. Meanwhile, these aren’t the only recent bullish developments for Shiba Inu.
NewsBTC recently reported that SHIB’s foremost decentralized exchange (DEX), ShibaSwap, is expanding to Shibarium. This move is expected to increase ShibaSwap’s user base and Shibarium’s, by extension. Shiba Inu will ultimately benefit since an increase in Shibarium’s user base means more transactions, leading to more SHIB burns.
Why Shiba Inu Is Down
Seeing how these metrics paint a bullish outlook for the meme coin, it isn’t out of place to wonder why Shiba Inu has experienced significant price drops lately. One reason for this price decline is Bitcoin’s price action. Data from the market intelligence platform IntoTheBlock shows that SHIB’s price correlation with Bitcoin is currently at 0.82%, which suggests a “strong positive correlation” between both tokens.
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Therefore, SHIB’s price has mirrored Bitcoin’s, which has recorded significant price declines lately. Another reason for Shiba Inu’s price decline is the drop in large transactions, with data from IntoTheBlock showing a 4.60% drop in this crucial metric.
This suggests that Shiba Inu whales are cooling off on their investment in the meme coin, as this recent market downtrend may be affecting their confidence. These whales play a massive role in SHIB’s price discovery, and the meme coin’s price could pick up once they recover their confidence in the market.
A drop in Shiba Inu’s burn rate has also contributed to its recent decline. Data from the burn tracking website Shibburn shows a 76% decline in the number of SHIB tokens burnt in the past seven days and a 79% decline in the last 24 hours.
SHIB price falls amid market crash | Source: SHIBUSDT on Tradingview.com
Featured image from Bitget, chart from Tradingview.com
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