Data from BeInCrypto shows that Shiba Inu’s market cap currently sits at $4.3 billion, a far cry from the $5.31 billion it recorded on May 23. This decline coincided with a steep price fall of the digital asset, dropping to as low as $0.000005979 before rebounding to its current level of $0.0000073 as of press time.
SHIB Price Performance. Source: BeInCrypto
Why SHIB’s Price Struggled
During the last 30 days, Shiba Inu’s price struggle can be linked to the unfavorable market conditions of the period. The crypto industry has faced significant headwinds as the U.S. Securities and Exchange Commission (SEC) filed lawsuits against major crypto exchanges, Coinbase and Binance, over federal securities law violations.
Additionally, the emergence of new memecoins, like PEPE, Milady, and WOJAK, shifted the attention of several traders away from the OG memecoins like Dogecoin and Shiba Inu.
This meant that the brief memecoin bull run between March and April did not impact the token as investors focused on these newer entrants.
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Shiba Inu Holders Betting on Shibarium
Meanwhile, several Shiba Inu holders are counting on the expected launch of its layer-2 network Shibarium to turn things around.
Shibarium has been developing for over a year now, and its Puppynet testnet has been recording significant volume. The network has exceeded 22.5 million transactions, and the number of addresses has reached 16.9 million.
Shibarium Transaction Data (Source: Puppyscan )
Although the launch date has not been specified, many expect it will be in the next few months. The Shiba Inu team recently launched Shibacals , described as a “unique In-Real-Life component of the Shiba Inu Ecosystem.”
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SHIB’s Burn Rate Jumps 281%
Data from Shibburn shows that Shiba Inu’s burn rate spiked by 281% in the last 24 hours to 1.3 million tokens. While this represents a significant growth for the ecosystem, the memecoin burn rate declined by 87.97% to 38.67 million SHIBs on the seven days metrics.
Shib Burn. Source: Shibburn
SHIB’s burn rate is one of its community’s major priorities as it helps reduce its extensive supply. Several SHIB holders hope that an increased burn rate will positively affect the value of the remaining tokens.
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