Shiba

Bitcoin ETF

Shiba Inu

Spot

<a href="https://bitcoinist.com/shiba-inu-price-in-may/">Shiba Inu (SHIB)</a> saw a significant spike in a major metric, which signals a bullish outlook for the second-largest meme coin by market cap. Despite this, Shiba Inu’s price has failed to react positively, which can undoubtedly be a concern for <a href="https://bitcoinist.com/shiba-inu-top-5-private-holders/">token holders</a>.&nbsp; 
<h2 id="shibarium-sees-increase-in-active-accounts">Shibarium Sees Increase In Active Accounts&nbsp;</h2> 
<a href="https://www.shibariumscan.io/stats" rel="nofollow noopener" target="_blank">Data</a> from Shibariumscan shows that the number of active accounts on the <a href="https://bitcoinist.com/shiba-inu-shibarium-hard-fork/">layer-2 network</a> rose from 1290 on April 27 to 3,839 on April 28, representing over a 144% increase. Such development is bullish for Shiba Inu, considering how the layer-2 network has been <a href="https://bitcoinist.com/shiba-inu-burns-bright-shib/">integral</a> to the meme coin’s success since it <a href="https://bitcoinist.com/shiba-inu-shibarium-public/">launched last year</a>.&nbsp; 
Related Reading: <a href="https://bitcoinist.com/bitcoin-to-300000-crypto-pundit/">Bitcoin To $300,000? Crypto Pundit Reveals What Will Drive It</a> 
Shibarium also saw the number of new transactions on the network spike from 4,997 on April 27 to 12,191 on April 28. This is even more bullish for Shiba Inu since the amount of SHIB burns Shibarium carries out depends on the number of transactions it records. Meanwhile, these aren’t the only recent bullish developments for Shiba Inu.&nbsp; 
NewsBTC <a href="https://bitcoinist.com/shiba-inu-shibaswap-expands-to-shibarium/">recently reported</a> that SHIB’s foremost decentralized exchange (DEX), ShibaSwap, is <a href="https://bitcoinist.com/shiba-inu-shib-2024/">expanding</a> to Shibarium. This move is expected to increase ShibaSwap’s user base and Shibarium’s, by extension. Shiba Inu will ultimately benefit since an increase in Shibarium’s user base means more transactions, leading to more <a href="https://bitcoinist.com/shiba-inu-burn-rate-48554/">SHIB burns</a>.&nbsp; 
<h2 id="why-shiba-inu-is-down">Why Shiba Inu Is Down</h2> 
Seeing how these metrics paint a bullish outlook for the meme coin, it isn’t out of place to wonder why Shiba Inu has experienced <a href="https://bitcoinist.com/dogecoin-shiba-inu-price-red/">significant price drops</a> lately. One reason for this price decline is Bitcoin’s price action. <a href="https://app.intotheblock.com/coin/SHIB/deep-dive?group=all&amp;chart=all" rel="nofollow noopener" target="_blank">Data</a> from the market intelligence platform <a href="https://bitcoinist.com/bitcoin-time-bull-market-intotheblock-explains-why/">IntoTheBlock</a> shows that SHIB’s price correlation with Bitcoin is currently at 0.82%, which suggests a “strong positive correlation” between both tokens.&nbsp; 
Related Reading: <a href="https://bitcoinist.com/blackrock-spot-bitcoin-etf-inflows/">BlackRock Spot Bitcoin ETF Grinds To A Halt, Records Longest Stretch Without Inflows</a> 
Therefore, SHIB’s price has mirrored <a href="https://bitcoinist.com/bitcoin-to-300000-crypto-pundit/">Bitcoin’s</a>, which has recorded significant price declines lately. Another reason for Shiba Inu’s price decline is the drop in large transactions, with data from IntoTheBlock showing a 4.60% drop in this crucial metric.&nbsp; 
This suggests that <a href="https://www.newsbtc.com/shiba-inu/shiba-inu-whales-shib/#:~:text=Shiba%20Inu%20Whale%20Accumulates%20332%20Billion%20SHIB%20Tokens&amp;text=A%20plausible%20explanation%20is%20the,almost%2040%20trillion%20SHIB%20tokens." rel="nofollow noopener" target="_blank">Shiba Inu whales</a> are cooling off on their investment in the meme coin, as this recent market downtrend may be affecting their confidence. These whales play a massive role in SHIB’s price discovery, and the meme coin’s price could pick up once they recover their confidence in the market.&nbsp; 
A drop in Shiba Inu’s burn rate has also contributed to its recent decline. <a href="https://x.com/shibburn/status/1785172274326184396" rel="nofollow" target="_blank">Data</a> from the <a href="https://www.shibburn.com/" rel="nofollow noopener" target="_blank">burn tracking website Shibburn</a> shows a 76% decline in the number of SHIB tokens burnt in the past seven days and a 79% decline in the last 24 hours.&nbsp; 
<img loading="lazy" decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/BOis8WvJ/" alt="Shiba Inu price chart from Tradingview.com
" width="3286" height="1530">

Shiba Inu Sees 144% Spike In Major Metric, But Why Is Price Down?

Table of Contents

Bitcoinist

Other articles published on May 1, 2024

Here’s When Bitcoin (BTC) Price Will Initiate a Fresh Rally

Bitcoin Falls to $57,000 Amidst Decreasing Demand: When Can Price Reverse?

2019 Email Reveals Microsoft’s $13bn Bet on OpenAI Was Fueled Out of Fear

Rep. McHenry Alleges SEC Chair Gensler Misled Congress on Ethereum Status

Ripple Unlocks 500M XRP from Escrow: XRP Traders Panic for Price Drop

Binance Founder CZ Received Just Four Months Sentence For Financial Misconduct

Join our free newsletter for daily crypto updates!