• Shiba Inu (SHIB) is facing a tough time due to a decrease in network growth and long-term holders selling their assets.
• On-chain data indicates a lag in active addresses and new addresses on the Shiba Inu ecosystem.
• SHIB’s burn rate has skyrocketed, yet its value remains flat.
SHIB Struggles Amid Decreasing Network Growth
Shiba Inu (SHIB), the popular dog-inspired cryptocurrency, is currently experiencing some difficulty breaking free from its recent slump. Data provided by Glassnode suggests that there has been a steady decline in new addresses on the Shiba Inu network since the beginning of March, with only 1,759 new addresses currently recorded compared to 4,575 from February. This could imply waning interest or focus shifted towards other virtual assets.
Long-Term Holders Offload Assets
The Shiba Inu community is also contending with long-term holders selling off their assets which is contributing to significant sell-offs and placing additional downward pressure on prices. On top of this, on-chain data indicates that active addresses have lagged; measuring only 106,000 after 30 days which suggests users are less keen to conduct transactions using the token due to SHIB’s underwhelming performance resulting in an 18.65% drop within that same timeframe.
Burn Rate Increases Without Price Change
One curious development has been SHIB’s burn rate which has increased by 5,000%. However, despite this surge its value has remained stagnant over the past two weeks raising questions as to whether current conditions will allow for price resurgence anytime soon.
Analysis
Market analysts and SHIB investors are speculating what could be causing these trends and if they will allow SHIB to rebound anytime soon. The decrease of new addresses could indicate lack of interest in coin or shift of focus towards other virtual assets while long-term holders offloading assets compounds downward pressure on prices making it increasingly difficult for SHIB’s price recovery in foreseeable future. Further increasing speculation is SHIb’s burn rate rising without any change in its value leading people wonder if these current conditions will lead to price resurgence at all?
Conclusion
It remains uncertain whether current conditions will lead to price resurgence for SHIb anytime soon however one thing is certain – it requires more than just increase burn rate for coin value to rise again as other factors like decrease in new address count and long term holder selling off their holdings need addressing as well before any further progress can be made for coin recovery success story
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