Shiba Inu (SHIB): Could This Cryptocurrency Change Your Future Portfolio? Experts Weigh In

In the ever-evolving world of cryptocurrency, investors are constantly on the lookout for newer and potentially profitable opportunities. One such digital token often discussed is Shiba Inu (SHIB).

Shiba Inu (CRYPTO: SHIB) has seen better days.

The coin, which recently dropped to $0.000022, marks a steep decline of 33% from its peak earlier this month. Despite a modest recovery of about 3.5%, as noted on Saturday, the overall outlook seems unfavourable.

The decline appears to stem from broader challenges within the crypto industry, which include declining volumes and a general market slump.

Here's a closer look at some of the core issues affecting Shiba Inu.

Shibarium Performance

One key issue affecting Shiba Inu is the waning performance of Shibarium, its Layer-2 network. Recent data highlights a stark slowdown in growth.

For instance, on Friday, only 44 new accounts were reported on the network, compared to 3,400 just a few weeks earlier. The active user base also saw a sharp decrease, impacting the network’s vibrancy and activity.

Transaction fees on Shibarium have consistently diminished after peaking earlier this month. This was accompanied by a significant reduction in total value locked — from $6 million to $3.55 million.

Such figures are crucial as they directly affect Shiba Inu’s burning process, which is essential for maintaining scarcity.

Burn Rate Impact

Speaking of burn rates, Shiba Inu’s has taken a hit, with a 98% decrease in the past week. This has drastically affected its circulating supply, which now stands at 584 trillion tokens.

Chart patterns indicate potentially further declines, with the price nearing a bearish threshold. However, the coin continues to find short-term support above a key trendline, offering a glimmer of hope for recovery.

That said, any breach could push prices to further lows, intensifying investor anxiety.