Shiba Inu is very volatile as its burn rate and Shibarium transaction fees continue to decline.
Shiba Inu (SHIB) fell to $0.000022, down 33% from its peak this month.
At last check on Saturday, the Ethereum meme coin was up at least 3.5%. See below.
Why did Shiba Inu retreat?
This decline is mainly due to continued weakness and falling volumes in the cryptocurrency industry.
Shiba Inu’s fundamentals have also deteriorated in recent days. First, Shibarium’s network is no longer growing like it was months ago.
According to Shibarium Scan, the number of new accounts on Friday was just 44 – much less than 3,400 on December 4th. The cumulative number of accounts has increased to 222,000, while active accounts have decreased to less than 3,000.
Shibarium’s average transaction fees have continued to decline after reaching a high of 0.0004 earlier this month. The total value locked has also dropped to $3.55 million from over $6 million on December 7th.
These numbers are important to Shiba Inu because Shibarium is its Layer 2 network and its success matters. Additionally, the charges of Shibarium that are in the form of BONE are usually converted into SHIB and then burned. Burning is a process that moves cryptocurrencies into a…
