Shiba Inu, the second-largest meme coin, is facing a rocky road ahead. The much-anticipated launch of Shibarium, a Layer 2 scaling solution, is shrouded in uncertainty, leaving SHIB holders on the edge of their seats. In the midst of a crackdown by the US Securities and Exchange Commission (SEC) on cryptocurrencies, Shiba Inu has taken a blow, experiencing a significant decline in its value.
The combination of regulatory pressures and the looming possibility of a delayed Shibarium launch has intensified the bearish sentiment within the Shiba Inu community.
With hopes high and excitement building, the Shiba Inu community has been eagerly awaiting the arrival of Shibarium since 2022. However, recent events have cast a shadow of doubt over the previously anticipated timeline.
LucieSHIB, the content marketing specialist for Shiba Inu, took to Twitter to break the news to her 83.8K followers that Shibarium will not be launched this month. As if that weren't enough, there's no confirmation of a launch within the next two or three months either. It seems the Shiba Inu enthusiasts will have to wait a little longer to witness the scaling solution they have been eagerly anticipating.
Meanwhile, Shiba Inu's price has taken a rollercoaster ride recently, plunging by a staggering 23% within a week. This sharp decline can be attributed to the perfect storm of events that unfolded, including the SEC's crackdown on cryptocurrencies. The absence of a bullish catalyst, like the launch of Shibarium, only exacerbates the already bearish sentiment hanging over Shiba Inu in the short term.
Whales Dump Trillions of SHIB Tokens, Amplifying Market Volatility
In other related news, the Shiba Inu network recorded a wave of activity over the weekend as whales unloaded huge chunks of SHIB onto the market, causing a stir. According to the blockchain analytics firm IntoTheBlock, these whales have reduced their holdings by a mind-boggling 3 trillion tokens since last Friday.
Initially boasting a collective total of 661.44 trillion tokens, these whales have seen their holdings dwindle to 658.48 trillion SHIB over a space of 48 hours. Such significant transfers are often associated with sales and are interpreted as bearish signals, adding to the already heightened market volatility.
SHIB Burning Intensity Suffers As well
As if this wasn’t enough, Shiba Inu has also recorded a significant drop in tokens getting burned. Over the past seven days, over 282 million SHIB tokens have been burned in 22 transactions.
While this might seem like an impressive number at first glance, it’s an abysmal record for Shiba Inu. For context, in the previous week, over 4 billion SHIB tokens were burned. 282 million from last week marks a whopping 92.5% drop from the previous week.
And the trend doesn’t seem to be slowing down one bit. Over the past 24 hours of writing this, the rate of SHIB tokens burned has dropped by an unbelievable 99.5%, with only 1.3 million tokens getting burned.
SHIB Price Reflects the Same Sentiment
Shiba Inu recorded a new yearly low over the weekend after plunging by over 29% to the $0.0000054 mark, its lowest point since September 2021. While the price has since jumped to the $0.0000067 level, it’s not looking good for SHIB.
Over the coming weeks, SHIB will have to fight tooth and nail to return to stable levels of $0.0000090. That said, the current market sentiment will make this task all the more difficult.
With failing on-chain metrics, dull market sentiment, and a postponement in the launch of Shibarium, Shiba Inu has its work cut out for it in the coming week and beyond.
This article should not be taken as financial advice. It is essential to conduct research before making any investment decisions.